Policy Price

Article by Richard Burgess

Let property insurance quotes may, at face value, appear to be a little complicated but in reality they are relatively easy to understand.

Purpose

Let property insurance quotes exist to provide you with a cost projection for an insurance policy that provides cover for a property you are currently earning rental income from.

In this respect, let property insurance (also known as landlord insurance or sometimes buy to let insurance) is significantly different to conventional owner-occupier buildings and contents insurance.

Space does not permit a full discussion of the technical differences between landlord insurance and owner-occupier cover but suffice to say that you cannot use owner-occupier insurance policies to protect your building and its contents if you are obtaining rental income from the property.

That may even include situations where you are renting out a room or two of property you also occupy as the owner.

Contents

Typical let property insurance quotes will comprise:

• an outline of the risk they are covering – this is typically a reiteration of the basic information you will have provided about your policy as part of the quotation process (e.g. the type of property, its location and value etc);

• confirmation of the price and possibly payment options for the insurance itself;

• an outline of the cover provided for your buildings, contents, third party liabilities and any other benefits provided by the policy;

• the terms and conditions – it is imperative that these are not disregarded as ‘red tape’ and they should be thoroughly read, as they may influence the suitability or otherwise of the policy for your particular circumstances;

• if not included under terms and conditions, a landlord insurance quote may contain a list of exclusions, which, as you may imagine, it is very important to read thoroughly.

Interpretation

Sometimes, there is the danger that a policyholder may consider price to be the most important aspect of the policy.

Unfortunately, in the event of a claim, the cost of your insurance will no longer feature anywhere in your list of priorities and you will be exclusively focused on just what your let property insurance can do for you in your problem situation.

That is why it is typically a good idea to carefully review your situation and your associated insurance requirements, then try to match those against the detail of the cover outlined by a buy to let insurance quotation (remembering to take into account the terms and conditions plus any exclusions).

It may be worth considering putting to one side the price of let property insurance quotes until such time as you have satisfied yourself that the policy will be offering cover that will be suitable for your particular circumstances.

About the Author

Richard Burgess is Director of cover4letproperty (http://www.cover4letproperty.co.uk) a dedicated UK landlord insurance broker. Their easy to use site and friendly staff will get you multiple quotes from specialist insurers for landlord insurance at a competitive price.