The importance of reviewing your landlord insurance policy annually

As with any annual policy or agreement, you should review your insurance each year to make sure it’s still giving you the cover you need and paying a fair price for the policy.

With several of the new measures in the Renters’ Rights Act likely to have an effect on landlord insurance, it’s going to be particularly important to review and revise your landlord policy over the coming months and years as the various laws are introduced.

If you are looking to shop around, it’s worth making enquiries one or two months before your current policy is due to expire. Leaving it until the last minute can lead insurers to consider you higher risk for not being more prepared, and they are less likely to offer you the best deal – particularly if you’re using an online comparison site.

Here are six good reasons for reviewing your policy:

1. The standard renewal premium may have changed. Price changes may be due to inflation or risk-based i.e. increased frequency and severity of extreme weather events, a general rise in claims.
2. You may have made some changes to your property or the way you let it and have forgotten the impact on your insurance which is a significant risk. In this instance it’s important your policy details are amended to ensure you remain fully covered.
3. If you have increased the size of your portfolio since your last renewal, you may be able to make savings through a portfolio insurance policy. If you have sold any properties and now only own one, the cost of insuring that single property might be less than you were previously paying.
4. Consider your budget. Reviewing your insurance needs for the coming year in line with your current business model, allows you to understand costs earlier and amend your budget accordingly.
5. If the monthly rental you charge has gone up, you might need to increase any rent guarantee insurance premium to ensure you continue to receive the full amount if your tenant defaults.
6. You might need extra cover or to inform your insurer if your tenant is now receiving benefits or keeping a pet.

Four more things to consider:

• Are you happy with your level of cover? Find out about the optional extras your insurer offers that could give you greater peace of mind.
• Are you comfortable with your current excess? Read our recent article to find out more about how much difference your policy excess has on your premium.
• Review how you pay – paying annually could reward you with savings for paying upfront however paying monthly offers more opportunity to budget, so decide which works best for you.
• Are you aware of the changes coming in as part of the Renters’ Rights Bill, including not being able to ‘unreasonably’ refuse pets?

And if you are with another provider or just embarking on acquiring your first rental property and you’d like to get an insurance quote, you can contact our team either via our online form, or by calling 01903 890044.