Landlord Mortgages, the UKs largest specialist buy-to-let broker, carried out mystery shopping amongst leading buy-to-let insurers and found huge differences between providers.
In some cases, insurers are charging up to 139 per cent more than their competitors.
Lee Grandin, managing director, Landlord Mortgages, said: It is important that landlords with buy-to-let property to look after their investment by insuring the building. While regular home insurance may cover some aspects, there are extra risks involved when tenants are involved, which means many choose insurance specifically designed for landlords.
With rental yields declining and margins being squeezed for the buy-to-let investor, it is important to shop around for building insurance. As this research shows there can be huge differences in premiums, and so savings can be made.
Grandin said: The cheapest may not always be the best. Landlords should check the cover that each policy includes. There can be huge disparities in the cover for unoccupancy, loss of rent, re-housing costs and accidental damage to name but a few. Landlords should ensure the policy they choose is adequate to suit their needs, without paying over the odds for it.
