Buy to let insurance firms are manipulating the cost of cover to make more money from landlords by tinkering with features on their policies.
In a snapshot of the market by independent financial monitors Defaqto, 10 top features of 87 buy to let insurance were identified - but some of the most popular are only offered if the landlord pays up extra cash.
Landlord contents is one feature many landlords take to cover electrical goods and furnishings - yet only 11% include the content in standard cover, while the remaining 89% of policies charge extra.
Rent guarantee cover is not offered by any insurer - but 39% will add the option for an additional premium.
The top 10 features landlords should consider in their cover were identified by Defaqto as:
Feature
% of buy to let policies offering cover as standard
% of buy to let policies offering cover as an optional extra
Unoccupied period (Time a policy will cover an empty home)
99% (Ranging from 1 to 120 days)
N/A
Loss of Rent
86%
14%
Malicious damage by tenants
47%
17%
Replacing locks after key theft
45%
38%
Employer liability
33%
39%
Unauthorised use of gas, water, electricity if a property is occupied without landlord consent
28%
N/A
Damage cover if tenants steal from the property
23%
6%
Squatters insurance - for legal fees to remove squatters)
20%
37%
Landlords contents cover
11%
89%
Rent guarantee cover if tenants default on payments
0%
39%
Mike Powell, Defaqto's insurance analyst, said: “It is important for landlords to consider specialist insurance for their property portfolio as there are a number of key risks that are specific to rental situations.
“In general, buy to let insurance provides cover over and above regular home insurance policies when it comes to rental situations, and it would be dangerous for someone to assume that their home insurance would provide adequate cover for their buy to let property.
"We have highlighted 10 key policy features that landlords should consider when looking for insurance for their rental property. In addition, landlords need to understand the level of cover actually offered by a policy - as although the risk may be covered, the level of cover provided varies widely between policies. As ever, people need to focus first and foremost on the features and cover offered by policies when comparing options and not be driven by price."
