How to Cut Property Insurance Premiums PDF Print E-mail
Written by James Robinson   
Tuesday, 12 April 2011 14:34
As a landlord there are certain overheads which cut into the potential profit which comes from a property or portfolio of properties. As well as paying fees to agents for advertising properties and paying the mortgage on properties, landlords must pay for landlord property insurance to cover their properties for certain occurrences which might require financial input to rectify them.
by JamesRobinson


As a landlord there are certain overheads which cut into the potential profit which comes from a property or portfolio of properties. As well as paying fees to agents for advertising properties and paying the mortgage on properties, landlords must pay for landlord property insurance to cover their properties for certain occurrences which might require financial input to rectify them.

Because of the overheads associated with property renting there are certain steps which can be taken to reduce property insurance premiums to lower the overheads too. Whilst the condition of the property will not directly reduce an insurance premium, an insurance company may choose not to cover a property if they feel it is very likely to suffer from problems. If this does occur then there will be fewer companies to play off of each other to reach the best value.

Another way of keeping premiums as low as possible is by keeping claims to a minimum. An insurance company may come back with an extremely high renewal quote if a landlord is seen to be claiming commonly for problems in a property. However there is a good chance that the policy cost will be reduced if the landlord doesn't claim for anything throughout the policy.

Making sure the policy suits their requirements is one of the best ways for a landlord to save money on their policy. Landlords should shop around for not just the cheapest but also the most suitable policy they can find as there is no point paying for something on a policy which is not really needed.
Buying properties in certain areas which are not at a potential risk is another way for landlords to keep their property insurance premiums low.

Another way for landlords to keep their insurance premiums low is to buy properties in certain areas which are not at a potential risk. Buying a property and letting it furnished in a high crime rate area will likely warrant a higher premium than a low crime rate area. The same would go for a known flood risk area too.

DISCLAIMER: This article is provided as information only and is not to be taken as financial advice.

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