Cheapest insurance 'is not necessarily best for landlords'

News Category: Management

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It is important that landlords do not simply pick their insurance policies based on their price, an industry expert has said.

Alan Ward, director of the Residential Landlord's Association (RLA), explained that some landlords were attracted to insurance policies with low premiums, but found they were inappropriate when it came to making a claim.

He added: "There is cheap insurance and there is good value insurance. Beware of insurers whose names you have never heard of.

"There is an old adage that you never know how good your insurance is until you make a claim. Insurance for landlords is a specialist market - for example you need to consider what cover is available during voids for example when you have no tenant."

However, Mr Ward said that there were ways which landlords could reduce the size of their premiums. These included opting for a larger excess on the policy.

Recently, Chris Horne, editor of Property Hawk, said that many people become landlords "accidentally" and that it was important for these people to make sure they knew the rules about things like insurance and the Tenancy Deposit Scheme.

"If you go to websites and books, and do a little bit of initial research then really there's not an awful lot to it," he concluded.

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