Insurers usually consider a range of different factors to determine the cost of your landlord insurance. We call these ‘rating factors’.
Some of them are to do with you and your property and some of them are things you can’t control, like the insurance market or tax rules.
Your postcode
The location of your property is very important.
This takes into account things like:
- crime rates and frequency in your area – for instance, the number of break-ins
- the proximity to water – how likely your house is to flood
- the risk of subsidence – subsidence is when the ground beneath your home sinks, and is more common in areas that have a certain type of soil
The type of building
Whether it’s a flat, terraced, detached or semi-detached house, the type of building you own can impact the price of your insurance.
Larger properties are often more expensive to insure. This is simply because it’ll likely cost more to repair or rebuild if there’s any damage.
We also take into account things like how old the property is, what kind of materials it’s made from, and if it has any unique features or is listed.
All these things could affect how much repairs would cost, which in turn impacts the price of your insurance.
Repair costs and frequency
We look at the average cost and frequency of repairs in your area. If repairs get more expensive or more frequent, this could impact the price of your insurance.
On the other hand, you could get a lower price if repairs become less expensive or less in demand.
Government changes and tax rules
Government tax rules can impact landlord insurance prices, for instance, Insurance Premium Tax (IPT).
IPT is a government-introduced tax on insurance policies including car, home and landlord which every insurance provider must charge.
Sometimes, the government will raise or lower the IPT, which will be reflected in your quote.
At the minute, landlord IPT is set at 12%. Read more about IPT.
Weather conditions
Weather plays a big part in how much your landlord insurance costs.
For example, your price might be more expensive if your property is:
- close to the sea
- in an area that’s prone to flooding
- somewhere that has very high winds
This means it’s more likely that your property could be damaged or flooded and need serious repairs.
Our landlord insurance
Whether you’re a first-time landlord or a seasoned property owner, it’s a good idea to have landlord insurance in place to protect yourself.
If you’re a first-time landlord, check out our handy landlord checklist to find out what you need to have figured out.
