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Wednesday, December 03, 2008

Landlord insurance tied to buy-to-let mortgage

Many landlords especially those new to being a landlord and buy-to-let investor are talked into taking out landlord insurance with their buy-to-let lender. This is invariably a mistake. A landlord will probably be paying at least 30-40% over what they should do for their landlord insurance.

Buy-to-let lenders often 'subtly' encourage landlords to use their insurance by making them pay an administration charge for not selecting their landlord insurance and opting to make their own provision. I have never used my lenders insurance, partly out of principal. No body is going to black mail me into having their insurance. And partly because I know I'm paying far too much for their landlord insurance and given that the average landlord holds a property for 17 years - this is going to work out at a lot of dosh.

Where would I go for my landlord insurance?

Firstly, I would always advice landlords to get a range of quotes before deciding.

Go here where many professional landlords go for a good choice of some of the most competitive landlord insurance providers. I use Alan Boswell for my and have done for over a decade. They have a specific landlord insurance department. Seem to know what they are doing, have friendly helpful staff and there has never been a problem. They also do most of the landlord insurance for the landlord associations. But never buy the first landlord insurance product you find, make sure you get at least 3 quotes to be sure you have got the best deal.

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