Why Cheap Landlord Insurance Is Not Always The Best

Cheap Landlord Insurance

A premium is an important aspect that must be considered when choosing a property insurance policy. Some tipsters will tell you to focus on finding cheap landlord insurance, but experts largely refute such claim. Many rental property owners largely consider their insurance premium on top of their list to save money. However, a closer look will tell you that such a claim may prove to be counterproductive.

Here are the reasons why the cheapest landlord insurance is not always the best:

  • Low Credibility

Many reliable insurance companies invest to join professional associations or groups to build their reputation in the market. This “investment” ensures them to not just increase their credibility but also maintain certain standards in the industry. This, in turn, will guarantee utmost protection to your property by virtue of a foolproof coverage which, unfortunately, may also come at a higher premium. Be reminded that these associations can also be of help when filing a complaint for an insurance company.

  • Unreliability

The last thing for you to worry about in the event of a disaster to your property is how long an insurer takes to get back to you. This is where ease of claims and convenience comes in. While many insurers provide comprehensive coverage, the quality of service varies—and cheap landlord insurance always tends to be on the low end when it comes to this.

  • Limitations

Cheap insurance premiums may seem like a gold mine at first glance. Upon a closer look, however, you are actually potentially paying for so much more. This is quite a challenge to landlords with rental properties prone to issues and problems. What could have been a way to save more money will make matters worse as they will need to incur out-of-pocket expenses for renovations and other factors due to certain limitations in insurance coverage.

  • Hidden Costs

While it may give you the illusion of more savings and lowered business cost, a string of important items that are not covered may be hidden from plain view unless you take a good look at each and every section in the policy wording. With all the confusing jargons, you may have a cheaper insurance premium but higher excess amount or less coverage.

  • Too Generic

Some cheap landlord insurance companies offer generic coverage. This can prove to be a disadvantage as coverage may not actually address all the risk factors in your property. Just like all other insurance policies, it is imperative to pick a needs-based landlord insurance to ensure that all your bases are covered.

Indeed, simply choosing a cheap landlord insurance policy is not always the best route to take. Even on personal matters, buying the cheapest things may not necessarily be the most prudent of actions. Remember to consider your property’s needs and choose one that fits within your budget.

Want comprehensive but cheap landlord insurance? Schedule a consultation with Landlord Insurance HQ. We can assist landlords in tailoring an insurance portfolio to address all their requirements. Request for a quote online or call us at 1300 815 344 now!