Want lower premiums? Here’s how to make your property more “insurable”
Every landlord wants to reduce their insurance premiums, but few truly understand what underwriters look for when assessing risk. Insurers don’t set prices at random — every element of a property, from its location to its fire alarms, affects how “insurable” it is.
By understanding how underwriters evaluate risk, landlords can take practical steps to strengthen their position, lower premiums, and ensure claims are more likely to be paid quickly and fully.
1. Property Construction and Condition
The first question every underwriter asks: “What’s it made of?”
Insurers look closely at construction materials, building age, and general condition.
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Roofing: Tiled and slate roofs are lower risk than flat felt or asbestos roofs. Poor roof maintenance often leads to water ingress claims.
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Walls: Brick and stone are considered safer than timber or composite materials.
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Electrical Systems: Old or non-compliant wiring significantly increases fire risk. Insurers may require evidence of electrical inspection (EICR) within the past five years.
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Heating Systems: Regularly serviced gas boilers reduce risk. Outdated or unvented systems are red flags.
Tip: Provide your insurer with documentation of recent maintenance, electrical reports, and boiler servicing certificates. This proves proactive risk management and may reduce your premium.
2. Security and Access Control
Security is a major determinant of insurability. Underwriters know that opportunistic theft and vandalism are common landlord claims. They assess:
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Locks: 5-lever mortice locks on external doors and key-operated window locks are often a minimum requirement.
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Alarms and CCTV: Professionally installed alarm systems and external cameras demonstrate strong risk control.
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Lighting: Exterior motion-sensor lighting can deter intruders and support liability defence if incidents occur.
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Communal Areas (for HMOs): Controlled entry systems reduce liability and protect contents.
Underwriter Insight: Many insurers apply premium discounts of up to 10% for properties with certified alarm systems or registered CCTV coverage.
3. Occupancy Type and Tenant Profile
The type of tenants and how the property is occupied are key underwriting factors. Risk varies dramatically between tenant groups:
| Tenant Type | Typical Risk Level | Common Concerns |
|---|---|---|
| Professional tenants | Low | Stable income, long-term occupancy |
| Students | Medium | Short-term, higher wear and tear |
| DSS / Universal Credit tenants | Medium to High | Increased arrears risk, property neglect |
| HMOs / Bedsits | High | Fire risk, shared responsibility issues |
| Airbnb / short lets | High | Transient guests, increased accidental damage |
Tip: Always be transparent about tenant type. Misrepresentation can invalidate claims. If you plan to change occupancy type (e.g., from single let to HMO), inform your insurer immediately.
4. Fire Safety Standards
Fire safety is a critical underwriting factor — especially for HMOs and multi-let properties.
Insurers often require proof of:
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Interlinked smoke and heat detectors
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Annual gas safety certificate
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PAT testing for supplied appliances
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Fire doors in multi-occupancy properties
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Clear escape routes and emergency lighting
Case Example:
A landlord in Nottingham provided full fire safety certification, including upgraded alarms and extinguishers. When their property experienced minor smoke damage, the insurer processed the claim within two weeks and renewed the policy with no premium increase — citing excellent fire risk management.
5. Location and Environmental Risk
Insurers use postcode-based data to assess environmental risks such as:
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Flood Zones – determined by the Environment Agency
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Crime Rates – especially burglary and vandalism statistics
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Subsidence or Ground Movement – in areas with clay soil or mining history
Tip: If your property is in a high-risk area, counteract this with documented risk controls — for example, flood barriers, alarm systems, or secure fencing.
6. Maintenance and Inspections
Neglected maintenance is a major reason claims are rejected. Underwriters favour landlords who demonstrate proactive care.
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Schedule annual roof and gutter inspections.
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Record all plumbing and electrical repairs.
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Keep photographic evidence of condition between tenancies.
Underwriter Insight: Some insurers offer lower excesses or “preferred risk” status to landlords who maintain digital inspection logs.
7. Claims History and Risk Behaviour
Insurers use your claims history to predict future risk. A pattern of frequent small claims can trigger higher premiums or restricted cover.
Best Practice:
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Absorb minor costs (like a small broken window) rather than claiming.
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Review the cause of each past claim and address it permanently.
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Demonstrate improved security or maintenance practices when renewing.
8. Legal and Compliance Factors
Finally, underwriters assess your compliance record. Failure to hold the correct licences or safety certificates can result in refusal to insure or non-payment of claims.
Checklist for compliance:
✅ Valid EPC (minimum rating E, with higher ratings preferred)
✅ Annual Gas Safety Certificate
✅ Electrical Installation Condition Report (EICR)
✅ Fire Risk Assessment (for HMOs)
✅ HMO or selective licence (if required by your local council)
Bonus: How to Make Your Property More “Insurable”
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Document Everything – Keep all safety and maintenance certificates easily accessible.
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Invest in Upgrades – Small improvements (fire doors, lighting, alarms) make a big difference to premiums.
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Be Transparent – Always disclose tenant types, refurbishment work, or short-let use.
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Use Specialist Brokers – A landlord insurance specialist like NetRent Insurance Services can help present your property to underwriters in the best light, ensuring fair pricing.
The Bottom Line
Insurers reward professionalism. A well-maintained, secure, compliant property not only attracts better tenants but also earns the trust of underwriters — meaning fairer premiums, faster claims processing, and broader coverage options.
At NetRent Insurance Services, we work closely with landlords to ensure their properties are presented to insurers as “preferred risks.” From HMOs and single-lets to portfolios and short lets, our team helps you protect your investments at the most competitive rates possible.
📞 Telephone: 01352 721300
📧 Email: insurance@netrent.co.uk