When landlords compare insurance quotations, the premium often receives most of the attention. That is understandable, but the price is only meaningful when the quotation is based on accurate information and provides appropriate protection.

Good landlord insurance does not begin with a price. It begins with the right questions.

A quotation produced without properly understanding the property, its occupants and how it is used may appear competitive. However, important differences can emerge when the policy wording is examined—or when the landlord needs to make a claim.

What type of property is being insured?

An insurer needs an accurate description of the building. This may include:

• The property type and age
• Its construction materials
• The type and condition of the roof
• The number of bedrooms
• Whether it is a house, flat, block or mixed-use building
• Whether it is listed or has unusual architectural features
• Whether it has been extended or converted
• Whether any part has a flat roof
• The property’s rebuilding cost

Not every rental property fits comfortably into a standard insurance quotation. Listed buildings, properties of non-standard construction, houses converted into flats and premises with commercial and residential occupants may all need additional consideration.

The market value should not be used as the rebuilding cost. One represents what the property might sell for; the other reflects what it could cost to demolish, clear and reconstruct the building following serious damage.

Who occupies the property?

The way a property is occupied can influence the risk and the insurance terms available.

The insurer may need to know whether the tenants are:

• A single person or family
• Working professionals
• Students
• Housing benefit recipients
• Asylum seekers or refugees
• A company or organisation
• Multiple unrelated occupants
• Living in a licensed or unlicensed HMO

Descriptions and terminology can vary across England, Wales, Scotland and Northern Ireland. Licensing and tenancy arrangements also differ. The important insurance point is that the occupancy must be described accurately rather than fitted into the nearest convenient category.

A quotation for a single-family rental should not automatically be assumed to cover a house occupied by several unrelated tenants.

Is the property currently occupied?

A landlord should explain whether the property is occupied, awaiting its first tenant, empty between tenancies or undergoing refurbishment.

Insurance policies commonly apply additional conditions when a property remains unoccupied beyond a specified period. The definition of “unoccupied” and the number of permitted days can vary between policies.

Conditions may relate to:

• Regular property inspections
• Water supplies and heating
• Removal of post
• Security precautions
• Notification of the insurer
• Restrictions on certain sections of cover

A property that is empty for refurbishment may present a different risk from one that is simply between tenants. The insurer needs to understand the actual circumstances.

Are alterations or building works planned?

Landlords should mention planned extensions, conversions, structural work or substantial refurbishment before work begins.

Ordinary landlord insurance may not automatically provide suitable protection while significant work is taking place. The property may also become temporarily unoccupied, its rebuilding cost may increase, or contractors may introduce risks that were not present when the original policy was arranged.

The safest time to discuss planned works is before contractors arrive—not after damage has occurred.

What protection does the landlord expect?

“Landlord insurance” is not a single, identical product. Policies can differ considerably.

Depending on the property and policy selected, landlords may need to consider:

• Buildings insurance
• Landlord’s contents
• Property owners’ liability
• Accidental damage
• Malicious damage by tenants
• Loss of rent
• Alternative accommodation
• Rent and legal protection
• Home emergency assistance
• Trace-and-access cover
• Damage caused by escape of water
• Cover for gardens, outbuildings or communal areas

Not every policy includes all these features, and limits, excesses, definitions and exclusions can differ. Two quotations with the same premium may therefore offer very different levels of protection.

What has changed since the previous renewal?

Landlords should not assume that last year’s information remains correct.

The insurer or broker may need to know about:

• A change of tenant or tenancy type
• A period of unoccupancy
• Building work or improvements
• A change in property use
• New security arrangements
• New claims or incidents
• Changes to the rebuilding cost
• An increase in landlord-owned contents
• The addition of another property

Even where a renewal has been issued automatically, the information supporting it should still be checked.

What is the claims history?

Previous claims and relevant incidents usually need to be declared accurately. This may include claims made under earlier policies and circumstances that could potentially lead to a claim.

If dates, amounts or circumstances are uncertain, landlords should check their records instead of guessing. Incorrect or incomplete information can affect the terms offered and may create difficulties later.

What excesses, limits and conditions apply?

The headline premium is only one part of the comparison.

Landlords should also examine:

• The policy excess
• Any higher excess for escape of water or subsidence
• Limits for loss of rent
• The maximum period for which rent may be covered
• Limits applying to landlord’s contents
• Unoccupied-property conditions
• Security requirements
• Significant exclusions or endorsements

A modest reduction in premium may not represent good value if it is accompanied by a substantially higher excess or reduced protection.

Why specialist questions matter

Landlord insurance is specialist property insurance. Rental properties bring together buildings, tenants, rental income, legal responsibilities and business risk.

This is why NetRent believes landlords should be able to speak to people who understand the private rented sector—not simply enter a few details into an automated quotation system.

NetRent works with Clear Insurance Management and its experienced insurance team to help landlords examine their requirements properly. Whether you own one property or a substantial portfolio, the starting point should be the same: accurate information, appropriate questions and a clear understanding of the proposed cover.

Send us your renewal documents

If your landlord insurance is approaching renewal, send NetRent your existing renewal documents. We can review the property information, policy features, terms and premium before seeking an appropriate alternative.

You can also contact us when purchasing a new rental property or adding another property to your portfolio.

Telephone: 01352 721300
Email: insurance@netrent.co.uk

The premium matters—but first, the insurance must be based on the right information.

NetRent does not provide legal advice. This article represents our understanding of rental property law.