Should You Pay Monthly Or Annually For Your Cover?
If you are looking to arrange landlord insurance to cover your investment property then one of the decisions that you will need to make is whether to spread the annual cost on a monthly basis or pay for the total amount all in one go as a single premium when arranging the cover. So, let us have a look at some of the pros and cons of both options.
If you pay for the cover on a monthly basis then this may assist your cash flow at a time when you may have additional things to buy if you have just purchased your investment property to let out to a tenant. Many people find it easier to pay monthly rather than annually as they don’t have to worry about making sure that the funds are their to meet the annual premium all in one go whereas it may be easier to have the funds available each month.
A downside of deciding to pay for your landlord insurance on a monthly basis is that it is quite likely that the insurance company will charge you interest taking into account the cost of the cover as, to all intents and purposes, you are borrowing the money from the insurer if you pay monthly. If this is the case then this means that the total amount of the premium for the cover is going to be greater than if you paid for the cover all in one go.
So, when arranging landlord insurance, do bear the above things in mind when deciding whether you want to pay for the cover either on a monthly basis or as a single premium all in one go when taking out the policy. We trust that the above observations have been of benefit to you. You may wish to obtain a quote for this type of cover through us.