Landlord Insurance - Only As Good As It's Claims Service

Landlord Insurance - Only As Good As It's Claims Service

Owning a buy-to-let property is an investment, so it’s easy to view insurance as just another cost and opt for the very cheapest Landlord Insurance you can find.

However, that could prove to be a false economy if you cannot depend on their service when it really counts.

The Moment Of Truth

Insurance is an emotive subject and you only really find out how good (or bad) the product is when you have to claim.  

Very often, the policy wordings and glossy brochures will be very similar, as such, it can be challenging to understand and evaluate claims service.  

However, we have put together some key pointers and questions to ensure you have the full picture BEFORE you buy your Landlords Policy.

Insurer Credit Rating

While not directly linked to claims service, an indication as to the stability and longevity of an insurer can be found in their credit rating.  

Most insurers will provide credit information via their website as determined by independent agencies such as Standards & Poors (S&P) or Moody’s.

The evolution of the EU has seen the growth on “unrated” insurers in the UK market, many of whom are domiciled outside the UK but are free to register with the FCA, trade and accept business under EU passporting rules.

The lack of an independent rating is not a direct correlation to solvency, nor is being rated for that matter, but a strong credit rating at least gives some comfort around the insurers’ ability to meet its potential claims obligations.

What Specifically Is the Claims Service On Offer?

If you suffer a break-in, fire or flood at your let property you don’t want to wait for claims forms and locating tradesmen to provide quotes, we would recommend the following:

  • 24 hour/365 days a year claims reporting
  • Dedicated claims handlers
  • Confirmed SLA’s around claims settlement (for example AXA attempts to settle small property claims within 24 hours via its award-winning first call resolution “one and done” service)

Claims Service Direct or Outsourced

We recommend you ask whether the suggested Landlord Insurance provider has their own claims team or whether they outsource claims handling to a third party company.

By utilising their own claims teams’, insurers can have greater control over their claims function and can often make faster decisions without the need to refer back to another entity.

Look At Independent Review Sites

Sites such as Defaqto review different insurer products and produce a rating based on service and cover, this can provide a great indication of the overall value provided.

Let A Landlords Insurance Broker Do The Hard Work For You!

A broker, such as Insync Insurance, deals with property insurance every day and has a great handle on the service provided by each insurer.  

The best question I’m asked is “if it was your property, which insurer would you choose?”  You can use this information together with any differences in the policy cover to make an informed choice, it is far better to spend 30 minutes now, than hours chasing an outstanding claim further down the road!

Book a FREE Insurance Review

Insync offers independent specialist advice on all area of Landlord Insurance, including bespoke HMO Insurance.  

We can Compare Landlord Insurance from up to 10 insurers in minutes to ensure you have the correct cover at the right price.

You can book a free review with one of our insurance experts via our website at a time that suits YOUR diary, alternatively, call us on 0330 1240730 we would love to hear from you.