What is Property Portfolio Insurance?
Property portfolio insurance is an insurance policy that allows landlords to insure multiple properties under one policy. Available for both residential and commercial landlord portfolios, individuals, managing agents or companies can combine all their renewals into one.
Insurance for property portfolios will cover your standard things like property damage through fire, contents cover as well as liability cover to protect against claims from tenants.
Multiple property insurance provides a comprehensive and streamlined approach to risk management across an entire portfolio whilst also saving you money.
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What Does Multi Property Insurance Cover?
Multi-property insurance, also known as portfolio insurance, is a type of insurance designed to cover multiple properties under one policy. The coverage provided by a multi-property insurance policy will depend on the specific terms of the policy and the needs of the property owner, but it may typically include the following:
The specific coverage provided by a multi-property insurance policy may vary depending on the insurer and the policy options selected. It is important to compare the terms and conditions of the policy to understand what is covered and what is not.
Who Needs Portfolio or Multi Property Insurance?
Portfolio or multi-property insurance is designed for property owners who own multiple properties. This type of insurance is suitable for various types of property owners, including:
- Residential landlords: Landlords who own multiple buy-to-let properties can benefit from portfolio insurance to protect their investments against risks such as property damage, liability claims and loss of rental income.
- Property investors: Property investors who own multiple properties, including commercial and residential properties.
- Property developers: Property developers who own multiple properties during the construction phase can benefit from portfolio insurance to protect their properties from damage caused by natural disasters or accidents that may occur.
- Management agencies: Property management agencies who oversee multiple properties on behalf of their clients can benefit from portfolio insurance to protect their clients investments.
- Housing associations: Housing associations that manage multiple properties can benefit from portfolio insurance to protect the properties against risks such as damage to common areas, liability claims, and other risks.
Is Multiple Property Insurance A Legal Requirement?
It is not a legal requirement to have a property portfolio policy, it is however a requirement to have insurance if the property has a mortgage associated with it.
Whilst landlord insurance is not legally required, it is highly recommended for property owners who rent out their properties. It will provide protection against various risks that may arise from ownership such as damage, liability claims and loss of rental income.
Without insurance, landlords may be responsible for paying for any damage to their property as well as any legal costs associated with liability claims. This can be costly and could result in significant financial loss.
Do Landlords Need Contents Insurance?
It is not a legal requirement for a landlord to insure the contents of a property but is instead down to personal preference.
Things such as carpets and curtains will not be covered on the building policy so a landlord may wish to insure those items if of high value. The remaining curtains, unless fully furnishing, are likely to be insured by the tenants as they will belong to them instead.
Many property portfolio owners who’s core business is providing fully furnished buy-to-let properties will often have contents cover to ensure additional cover for high value items.
Contents often insured by a landlord include.
- Carpet
- Curtains
- Fridge
- Freezer
- Dishwasher
- Washing Machine
- Tumble Dryer
- Oven
- Furniture
If within your portfolio you do not provide any of these items, then there is no real need for contents insurance.
How Is Multi Property Insurance Different From Home Insurance?
Multi-property insurance (or property portfolio insurance) and home insurance are different in several ways.
Home insurance is designed to protect the homeowner’s primary residence and the contents of the home, while multi-property insurance is designed to protect multiple properties owned by the policyholder.
Here are some of the key differences between multi-property insurance and home insurance:
- Number of properties covered: Home insurance only covers one property and that’s the owners main residency.
- Cover options: Home insurance policies usually offer a range of cover options for a single home tailored around personal belongings. It is less likely to see personal belongings covered on a multiple property policy.
- Premiums: Multi-property insurance policies may have higher premiums than home insurance policies due to the increased level of risk.
In conclusion, both types of policy will offer very similar insurance cover. However, a property portfolio policy will take into account higher and multiple risks especially if the policy is to cover commercial landlord insurance.
