Landlords beware: don’t be misled by low insurance quotes from the web, especially if your circumstances or property are in anyway out of the ordinary.
That’s the warning from the landlord division of Adrian Flux Insurance Services. Flux’s Julie Carter explains: "The internet is a great way of finding low prices, including for insurance for properties to let. But landlords need to be wary – if their circumstances aren’t standard, then the premium that’s quoted online may well rise significantly once the insurance company has all the details."
Carter says several customers have come to Flux after being given quotes that went sky-high once they actually talked to the original insurance company. "It’s not really the insurer’s fault," she explains. "Websites that offer automatic quick quotes have to make assumptions about the customer, otherwise they can’t offer a quote. If those assumptions are incorrect, it may well affect the premium."
For example, one customer had an internet-generated quote for a UK property withdrawn when the insurer discovered the owner lived overseas. "Many insurers aren’t comfortable with overseas landlords, unless they have a UK-based agent," explains Carter. "It’s a matter of keeping an eye on the property and being able to get hold of someone in a crisis."
Other areas that can cause internet-related issues include trying to insure an individual flat to let within a block of flats – whilst this is easy in Scotland, it can be very problematical in England, due to the different property laws. The construction of a house can also cause issues – if the quick quote form doesn’t include the relevant question, the chances are that the quote generated will be misleadingly low.
"This is a tough market and landlords, like the rest of us, are looking to save every penny," says Julie Carter. "The Internet is a useful tool – but if an online quote seems too low, it probably is."
Adrian Flux aims to offer cheaper home insurance and has a range of policies for homes, contents, landlords and buy to let, including specialist schemes for hard to insure properties such as thatched homes, underpinned buildings and those at risk of flooding. For information call the Flux household insurance hotline on 08700 772266, email household@adrianflux.co.uk or visit the website, www.adrianflux.co.uk, and click on the relevant button under the ‘Home Insurance’ section.