There are a lot of myths and misconceptions about landlord insurance. Many landlords don’t bother with specialist cover as they think it’s not suitable for them or that they don’t need it. Others believe it is too expensive or too much hassle to arrange.
The truth is that landlords insurance is great value for money and widely available. Here, we explode three of the most common myths about buy to let insurance.
Many landlords elect not to take out buy to let insurance as they think it will be expensive. However, landlord insurance is actually relatively inexpensive when compared to other forms of insurance. And, you will often find that basic landlord insurance will cost you little more than your own home insurance.
In addition, insurance premiums for a rental property are considered an allowable tax expense. This means that you can offset your landlord insurance premiums against the rental income you receive from a property for tax purposes.
I don’t need it
Many landlords don’t take out specialist insurance as they believe that they don’t need it. A recent YouGov survey commissioned by Paymentshield found that 23 per cent of landlords had no landlord insurance while a further 6 per cent were unsure as to what insurance they had.
You will often find that a standard home insurance policy won’t cover you if you let out the property. So, if you come to make a claim you may find that your home insurance is invalid as you didn’t inform that insurer that the property was rented out.
Unless you take out the appropriate landlords insurance, you may find that you’re not covered. This could leave you hundreds or thousands of pounds out of pocket.
It’s hard to arrange
In the past, landlord insurance may have been a niche product only available through specialist brokers or insurers. Now, though, landlord insurance is widely available through dozens of reputable companies.
Using an online comparison service is a great way to compare the price and cover offered by a range of leading landlords insurance specialists. You can generally complete your proposal form online and arrange your insurance via the web or by phone.
Make sure you shop around before buying landlords insurance at http://www.multiquotelandlord.co.uk/ where they do all of the hard work for you. The cost of cover can vary from insurer to insurer and even a small amount of research can help you to save money on your premiums.