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How to save on your landlord insurance

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Written by Martin Lane, Managing Editor

20 September 2018

Getting the right landlord cover is vital for protecting your rental property, but there are lots of ways to save money on your policy. Here is how to cut the cost of your landlord insurance.

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Always shop around

Your managing agent may offer you landlord insurance when you sign up with them, but it may not be the cheapest way to buy cover.

Comparing a range of landlord policies can help you find the cover you need at the best price. Use our comparison to search for the landlord insurance that is right for you.

How to choose the right landlord insurance

What is a managing agent?

This is the company responsible for managing your rental property. They usually perform a range of services, including collecting rent, inspecting the property and arranging repairs.

Look at package options

Combining your insurances in one policy will save you money and most packages include:

  • Building insurance

  • Contents insurance

  • Property owner's liability

  • Home emergency and boiler breakdown cover

  • Loss of rent

You may need to add rent guarantee insurance separately, which is around £100 a year.

If you have more than one property, think about taking out a portfolio landlord policy. This lets you cover several properties on one policy and usually gets you a discount.

Here is more information about how landlord insurance works.

Look at specialist cover

You may need specialist cover if you rent to certain types of tenants, such as students.

Using a broker to find specialist insurance could save you money because they will be able to find insurers who charge less and apply lower excesses when you claim.

Here is more information about finding specialist insurance

Avoid unnecessary cover

It is easy to include extra cover you do not need when getting quotes. Checking you only pay for the cover you need could save you money.

Building cover

This covers the cost of rebuilding your property if it were completely destroyed, for example in a fire.

It is important to give your insurer an accurate rebuild cost, as overestimating could leave you paying more than you need to for your insurance.

You can get a rebuild estimate from the Association of British Insurers

Contents cover

If your property is let unfurnished, you may only need a small amount of cover for contents.

Your tenants are responsible for their own contents cover, so you only need to insure items in the property that belong to you, like carpets or light fixtures.

Here is more information on how to choose the right landlord insurance cover

Choose a higher excess

Picking a higher excess for your landlord insurance could make your policy cheaper, although it will cost you more if you claim.

Try to choose an excess that best suits the section of cover it applies to:

  • Building claims tend to be larger, so you may want to choose a higher excess

  • Contents claims are often smaller, so it makes sense to pick a lower excess

You can find out how to claim on your landlord insurance here.

Pay in full

Paying in full for your policy will save you money because insurers charge an interest rate if you pay monthly. You could pay up front by:

If you are unable to pay in full, some insurers charge less for paying in lump sums. Speak to your insurer about their payment options and pick the one that saves you the most money.

Install extra security

These extra security measures could save you money on your insurance:

You must have working locks on all doors and windows as a minimum.

Speak to your insurer about other discounts they offer for extra security measures.

Minimise vacant periods

If your property remains empty for long periods, usually more than 30 days, your cover may be restricted or cost more.

If your property is going to be empty for a long time, you could save money by getting a specialist unoccupied insurance policy.

Using a managing agent could help you advertise your property and get new tenants more quickly. The Association of Residential Managing Agents (ARMA) has a list of authorised managing agents near you.

Avoid small claims

If you can pay for the cost of property damage or repairs yourself, it could save you money in the long run.

Making lots of small claims may cause your premium to go up at renewal and you might have to pay a higher excess. You may also struggle to find alternative cover elsewhere.

Here is more information about how to make claims on your landlord insurance

Renting your property out can be stressful, especially if you encounter unexpected expenses. Compare landlord insurance to get the protection you need for less.

Compare landlord insurance

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