Why do some landlords pay more than others?
It’s a frustration many landlords share. Two people can own similar houses on the same street yet end up paying very different premiums. The reason is that insurers look beyond the property itself. They weigh risk, history, and even tenant type. Once you know what drives those costs, you can focus on the areas you control. Lowering premiums is rarely about one big change. It’s usually a mix of small, sensible steps that show insurers you take risk seriously.
How does maintenance affect premiums?
Insurers dislike uncertainty. A roof in poor condition, old wiring, or neglected plumbing all raise the chance of future claims. Keeping your property in good order reduces risk and helps present you as a responsible landlord.
- Book annual checks for gas, electrics, and plumbing.
- Deal with small issues like loose tiles or damp patches before they escalate.
- Keep records of inspections and repairs to reassure insurers if questions arise.
Good maintenance is a double win: tenants feel safer and happier, and insurers may price your cover more favourably.
Could improving security bring premiums down?
Yes. Security is one of the clearest signals you can send to an insurer. A property that’s harder to break into is less likely to face claims for burglary or vandalism. Upgrades don’t need to be extreme, but practical measures make a difference.
- Use insurance-approved locks on doors and windows.
- Fit a modern alarm or smart sensors where possible.
- Add exterior lighting or CCTV in higher-risk areas.
These improvements don’t just appeal to insurers; they also reassure tenants, which can encourage longer tenancies and fewer problems.
Does tenant type influence insurance costs?
Yes. Who lives in the property matters almost as much as the property itself. Student lets, short-term rentals, and HMOs are often seen as higher risk due to turnover and wear. Professional tenants or families may be rated lower risk, though it’s not guaranteed. While you can’t always choose tenants with premiums in mind, thorough referencing and clear contracts reduce perceived risk and may help keep costs steadier.
What role does the excess play?
Every policy comes with an excess; the amount you pay towards a claim. Choosing a higher voluntary excess usually lowers annual premiums. The trade-off is that you take on more of the cost if something goes wrong. For landlords with healthy reserves or confidence in their maintenance standards, this can be a sensible way to cut costs. The balance is finding an excess that still feels manageable if you need to claim.
Are combined policies more cost-effective?
Separate policies for different elements of cover can sometimes cost more. Many insurers offer combined policies that include buildings, contents, liability, and extras in one package. While not always the cheapest option, bundling may reduce costs and simplify admin. It’s worth comparing both approaches to see which works best for you.
How much does claims history matter?
Insurers use claims history to assess risk. A pattern of claims, even for smaller issues, may push premiums higher. This doesn’t mean you should avoid claiming when it’s justified. But for minor repairs that you can comfortably fund yourself, it may be worth handling them directly rather than risking an increase in future costs.
Do unoccupied periods affect premiums?
Yes, and this often surprises landlords. Properties left empty for more than 30 to 60 days are usually seen as higher risk, which can lead to restrictions or higher premiums. Short voids are inevitable, but reducing them keeps both income and insurance costs steadier. If a property will be vacant for longer, specialist unoccupied property cover is usually required. Being upfront avoids problems if you later need to claim.
Is paying annually better than monthly?
Monthly payments feel easier to manage, but they often come with added interest or admin fees. Paying annually usually works out cheaper overall. For landlords with several properties, the upfront cost can be heavy, but if cash flow allows, the savings across a portfolio can be significant.
Do energy efficiency and sustainability affect premiums?
Increasingly, yes. Properties with strong insulation, modern boilers, or other efficiency upgrades may be seen as lower risk. These improvements cut tenant running costs and reduce the chance of problems such as damp or breakdowns. With energy standards tightening across the UK, properties ahead of the curve may look more attractive to insurers.
What about shopping around each year?
Many landlords simply renew without question, but loyalty often costs more. Premiums can creep up gradually, unnoticed. Shopping around forces insurers to compete for your business. Even if you stay with your current provider, having alternative quotes in hand may help you negotiate a better deal. The effort usually pays off.
Should landlords use specialist providers?
General home insurers don’t always cater well for rental properties. Specialist landlord insurers understand the risks and often offer packages that reflect them more accurately. Choosing a provider isn’t about chasing the lowest number; it’s about finding cover that properly fits your property and tenant profile.
Why lowering premiums matters beyond money
Cutting costs is useful, but there’s also a psychological benefit. Managing insurance actively gives landlords a sense of control in what can feel like an unpredictable world of repairs, voids, and regulation changes. It signals professionalism to insurers and tenants alike. And it brings peace of mind: knowing you’ve done what you can makes it easier to focus on long-term investment goals.
Final thought: lowering costs without lowering standards
Insurance isn’t something to cut recklessly. The aim is not to strip cover back but to balance protection with affordability. By focusing on maintenance, security, tenant quality, policy choices, and financial planning, landlords can often reduce costs without weakening cover. The future already brings enough uncertainty; taking control of premiums is one way to make it a little steadier.