Monthly Archives: October 2012

3 of the Biggest Landlord Insurance Cover Myths

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.

It’s expensive

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 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.

How to find cheap insurance for motor bikes

Some bikers spend huge amounts of time searching around, trying to obtain ever cheaper cover for their machines.

Understandable as that is, your approach might need a little tweaking if it is to yield results – and here are a few thoughts that might help:

  1. continue shopping around.  Nothing in the above is meant to suggest that you should stop making efforts to compare policies and prices.  However, try to keep in mind that what might be cheap for someone else may prove to be the opposite for you if it doesn’t cover you in the event you need to make a claim.  So, try to compare the cover on offer at the same time as you are looking at the prices – start thinking cost-effective rather than simply cheapest;
  2. check out insurance providers who offer specialist categories of cover.  These exist for things such as convicted bikers, female bike riders or scooter and moped riders etc.  You can also pick up things such as classic bike or cheap multi bike insurance quotes.  If you come into one of these specialist categories, a tailored policy might enable you to save money;
  3. judge the cost of a policy not just by its ticket price but also what opportunities it offers you for discounts.  For example, some policies might offer you substantial discounts if you simply garage your machine overnight rather than leave it standing around on the public road.  If you are able to take advantage of these discounts, you may find yourself saving interesting chunks of money;
  4. critically examine how you ride your bike.  If you are currently trying to include other riders on the policy who have motoring convictions or who are relatively young and inexperienced, they may be responsible for sending your premiums soaring upwards. Other examples of how your personal use may affect your premium include very high annual mileages or riding huge and super-powerful machines of a type that traditionally frighten insurance providers;
  5. think about increasing your excess.  The excess on your policy is the amount of cash that your insurance provider will expect you to contribute towards the cost of any future claims.  Typically, if you opt to take a higher voluntary excess then you may be able to obtain some quite interesting discounts on your premium – though the exact amounts may vary from one provider to another.

All things being equal, a little effort invested in some of the above areas may change your insurance bill quite considerably.

This is something that it is worth taking seriously.