When it comes to buying most things, one of the major considerations is how much something is going to cost. For instance, if you are buying a new car you are likely to have a budget. So, if you have £15,000 to spend it is not going to get you a brand new BMW that probably comes with a better build quality than that of a less expensive car.
Is landlord insurance any different? Well, it probably isn’t.
We appreciate that you have a budget but the priority should be to make sure that you have got the cover that you require. There is no point in arranging cover if it does not meet your needs in every important way.
For instance, if you provide contents in the rental property such as beds, chairs, tables, a TV and a computer, these will have cost a significant amount of money. You are under no legal obligation to insure them. However, what happens if a tenant damages them in some way such as accidentally ripping the leather sofa with a set of keys or spilling a mug of hot chocolate on a fabric armchair. The cost of repairing or replacing these items could be quite a lot. If you don’t have contents insurance then they would not be covered and even if you do arrange contents insurance some policies do not automatically cover you for such accidental damage – you may need to include such cover as an optional extra.
What would happen if a tenant stole some things from the property that were worth more than the deposit they had paid? This sort of eventuality could be covered although may cost more to do so.
Would you want cover for things like contract disputes or for a legal advice telephone line. These things may cost more to include in your insurance but may be worth having.
So, as you can see, the price you are prepared to pay does have a bearing on the level of landlord insurance. It also may pay you to shop around for this sort of cover.