Some insurance policies for landlords 'are overpriced'

There is a large discrepancy in the premiums landlords are being charged to insure their buy-to-let properties, a new study has shown.

Landlord Mortgages carried out a mystery shopper test on specialist insurance for landlords.

The study discovered that building cover for a two-bed mid-terrace house in Reading could be obtained for as little as £115, but that some firms were charging up to £275 for similar cover - a difference of 139 per cent.

"It is important that landlords with buy-to-let property to look after their investment by insuring the building," explained Lee Grandin, managing director for Landlord Mortgages.

"While regular home insurance may cover some aspects, there are extra risks involved when tenants are involved, which means many choose insurance specifically designed for landlords."

"Landlords should ensure the policy they choose is adequate to suit their needs, without paying over the odds for it."

Recently, Paragon reported that the rental market in the UK was in rude health, with landlords reporting that they expect to expand their portfolios in the coming months.

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