Buy To Let/ Landlords Insurance quotes

Immediate online let property insurance quotes from a range of landlord insurance companies

An overview of let property insurance

There are several key rating features for let property insurance. They are: Location of the property, the nature of the tenants residing in the property and the nature of the property.

How let property insurance is affected by location of the property

The premium for let property insurance depends on the claims made under the policy. Most claims relate to damage to the property and this property damage to a large extent depends on the location. Property that is close to a river, or not very high from water is obviously much more likely to flood (as witnessed several times over the years) than property in a higher position. Similarly property in an exposed location is more likely to suffer storm damage, and property built on clay is at risk of subsidence - especially in the drier climate found these days. Finally, of course, if the property is located in an inner-city area it is more likely to be damaged by vandalism or attempted theft.

How the occupants affects the let property insurance premium

As well as claims under let property insurance for physical damage there is also a potential moral hazard in the form of the tenants. A prudent property owner will have obtained references for the prospective tenants before agreeing to them occupying the property, nevertheless, insurance companies base their rates according to the class of tenant in the property. They feel that if the property is occupied by a professional person, paying their own rent, they are more likely to look after the property and will be of higher moral fibre. This is why the premiums for property occupied by professionals is cheaper than others. Quite a few insurers (we have a panel) also look favourably on students as tenants of the property as, maybe, they feel that if a student is willing to spend the money to seek a degree then they must also be of good standing. Nevertheless youngsters will be youngsters and they may not be as careful to keep the property safe as the more mature.

The other classifications for let property insurance all depend on some respect for the rent to be paid by the DSS or housing associations. This may include people on low income who pay a proportion of the rent themselves, to people without employment or asylum seekers. There is a difference between many insurers whether the property is occupied by a tenant who the landlord has selected (subsidised let) and one where the DSS has control of the occupant e.g. asylum seekers. In the worst cases the property may be vandalised by the tenants stripping pipes and boilers from the property and selling them.

How the type of property affects the cost of let property insurance

As the premium of let property insurance, of all types, depends on the amount to be paid out in the event of a claim, insurance companies usually use the rebuilding cost of the property to estimate the maximum loss. The older the property, the more expensive it is to rebuild, so the more it costs to insure. If the property is listed, moreover, the insurance company cannot just rebuild with new materials, they have to rebuild the property to the same construction as it was before the claim.  

Whilst let property insurance does not depend on the property being a terraced property, semi detached or detached, if there is a flat then sometimes the flat is insured under a management company and the landlord need only insure the contents therein. Similarly insurance may be required for a block of flats. Again we can cover property built either as purpose built or converted into flats.