For many landlords, insurance is seen as a safety net they hope never to use. With that mindset, it is no surprise that price often becomes the deciding factor, but choosing the cheapest cover upfront can come at a much higher cost when it is time to claim.
From a property management perspective, the impact of insurance decisions is not super apparent at time of application. It is revealed during a claim.
While agents are not responsible for selecting a landlord’s policy, the consequences of that choice can directly affect workloads, time, and relationships with landlords.
That is why this article looks at where cheaper policies can fall short and how agents can help landlords choose cover that will actually support them at claim time.
Where the gap is
At claim time, gaps often show up in areas like:
- Excesses. Some policies come with higher excesses that landlords only discover when they need to claim which can significantly reduce what they actually receive. For example, EBM RentCover has a $0 excess on loss of rent, whereas other policies may apply an excess that eats into the payout.
- Definitions of cover. Every feature in a policy comes down to how it is defined. When you look closer at the fine print, you may find limitations or exclusions. For example, not all “tenant damage” cover is the same. EBM RentCover covers accidental, malicious and intentional tenant damage, while other policies may exclude or limit one or more of these scenarios.
- Lower payout limits. Cheaper policies often have lower caps on key features, meaning landlords can be left out of pocket even when a claim is accepted.
- Missing cover. Important features can be left out altogether. For example, pet damage is not always covered under cheaper policies, but is included in EBM RentCover policies.
- Strict policy conditions. Some policies have tighter rules around how a property must be leased or managed. For instance, not all insurers cover periodic leases, which can limit a landlord’s ability to claim depending on their tenancy agreement.
These differences are not always clear when a landlord is comparing policies based on price, but they can have a major impact on the outcome of a claim, and on the experience for both the landlord and the property manager.
Where “cheap” often means more
A lower premium might look like a win upfront but when gaps in cover (like the ones above) are recognised during a claim, the real cost can quickly add up.
For example, a landlord may assume their policy covers all tenant damage, only to find certain types are excluded.
Or they may expect loss of rent to be covered for longer than it actually is.
In both cases, what looked like a cheaper option upfront can end up costing more.
These costs can show up in denied claims, partial payouts, unexpected expenses, and longer claims processes.
When a landlord experiences a declined or reduced claim, the insurer is not always the first point of frustration. Property managers often find themselves:
- Explaining why a claim was not paid as expected
- Managing repair delays caused by coverage disputes
- Dealing with emotional landlords facing financial pressure
- Answering tenant questions around unresolved damage
The quiet role agents can play
Property managers should not give insurance advice, but they can play an important role in helping landlords stay informed.
Simple actions like encouraging landlords to review their cover regularly, pointing out that policies can differ in what they include, and highlighting that not all insurance responds the same way to tenant-related damage or loss of rent can make a real difference.
Sharing clear, factual information about how cover works (without recommending a specific policy) helps set expectations early.
This approach sits firmly in education, not advice. By focusing on helping landlords understand their options, agents can support better decision-making without taking on responsibility for the outcome.
To sum it up
When it comes to landlord insurance, value is not just about what is paid upfront, it is about having certainty at claim time and clarity around what is actually covered.
The real difference comes down to how well a policy performs when it is needed most.
That is why looking beyond price can make all the difference.
At EBM RentCover, we support agents to support landlords. If you would like to learn more about how we can help your team and your landlords make more informed decisions about insurance, get in touch.