In the history of the United Kingdom, never before has the rental market been so lively. Though house prices are either stagnant or falling all over the country, mortgage lenders high deposit requirements mean that the property ladder is out of reach for many who have no option other than to become tenants.
With so many tenants after so few houses, those with capital to spare have turned their hand to becoming a landlord with a view to grabbing a share of the lucrative market. All of this has meant that the competition for buy-to-let mortgages and landlord insurance is furious. Over the past few years we have seen a huge growth in these areas with several companies springing up who deal exclusively with landlords and major banks and insurance companies frantically trying to undercut them. The truth is that if you are searching today you will find the best landlord insurance deals that there have ever been.
Landlord insurance is different
Landlord insurance isn’t as simple as regular home insurance. Though you do need to have the building covered, you don’t normally need to have the contents covered (your tenants will do this). However, there is the possibility that the property will stay empty for long periods which is seen as a risk by insurers so your policy will need to include cover for this eventuality. There are other added extras that you should consider when choosing your landlord insurance policy. For example, your tenants may fail to pay their rent or may cause considerable damage to your property. For one reason or another you may need to take the tenants to court, or they may take you to court. Landlord insurance is about much more than insuring your property, it can be about protecting your entire livelihood.
UKMM top tip
If you are in the fortunate position of owning more than one property, you should be able to negotiate a discount with a single insurer to cover all of them together – a little bit like a multi-car discount on car insurance – and the area in which you own the homes, and therefore the type of tenant you can attract, can also affect your premium.
Some UKMM recommendations
Most of the best deals to be currently found have been negotiated by online comparison site MoneySupermarket. They spotted that the market was more crowded than ever and negotiated discounts of up to 30% with insurers such as Simply Business, Property Quote Direct and Intasure. Outside of MoneySupermarket, the best deals are with Just Landlords and Simple Landlord Insurance who are currently offering a discount of up to 60%.