Purchasing property is a big investment, and one not to be taken lightly. Many people have found the buy to let option to be the best way for them to get a foot on the property ladder, and even experienced developers are seeing the benefits that consistent income from rentals can bring.
However, too often home owners are caught out by the extra red tape found with letting multiple properties. One area that is often overlooked is how landlords should go about insuring their new properties. If you have bought a property you intend to use for rental to tenants, you will need to buy landlord insurance for it. This will usually cover the property itself, but some policies also insure the contents too.
Some landlords decide to expand their property portfolio and buy multiple properties to use for renting out to tenants. If this applies to you, you’ll need to make sure each property is insured. If you only get one additional property you may be happy to take out another landlord insurance policy. However you may want to find out more about landlord insurance for multiple properties first.
Insurance is one of the biggest concerns new landlords face, and the anxiety around taking out a new policy is usually multiplied as the number of properties does.
But it doesn’t have to be this way.
Follow our advice and you’ll find that insuring multiple properties is much easier than you might think, saving you time, money and a whole lot of stress!
How many buy-to-let properties do you need before you can consider this option?
It depends on the insurer. Some will offer multiple-property insurance (or landlord portfolio insurance, as it is sometimes called) to cover two or more properties, with some offering policies to cover up to 10 properties at once, example here. Others will require a higher minimum number of properties. Each insurer will have their own terms when offering landlord insurance for multiple properties, so check to see which one would be best for you.
What are the advantages of getting this type of insurance?
Owning and managing multiple properties is no small feat, requiring patience, organisation and paperwork, lots and lots of paperwork. If you were to get a separate insurance policy for each property you own, this is going to amount to a lot of paperwork as you add more properties to your portfolio.
Apart from the financial savings, using just one insurer for all of your properties can cut down on this mountain of red tape substantially, allowing you to focus your attention on more important things. As a landlord you’re going to need all the time that you can get your hands on, don’t waste it on unnecessary admin.
It’s easier to add and remove properties as you go along
Most insurers will make it easy for you to remove properties if you sell them, and add new ones if you wish as well. Check the procedure with each insurer when you are shopping around, to make sure you know where you stand.
You should find you have a reasonable degree of freedom with regard to the type of properties you include in your policy too. For example, you may have an unoccupied property you need to have covered, or one that you have just bought and you are renovating before letting it out.
Shop around for the best deal
As always, insurance policy quotes can vary significantly between insurers. This makes it all the more important to shop around to get a competitive price. Insuring multiple properties is a big commitment, and as a landlord your lack of a ‘property chain’ means less chance of a sale falling through. Take your time and check out your options first.
Get a quote from multiple providers before you decide. There are several important factors to consider when making your comparisons.
Look at how much property owner’s liability cover you will get to cover your properties. Will you be covered for loss of rent if your tenants cause damage to your property that requires it to be cleaned or redone in some way before you can rent it out again? Not all tenants are ‘clean freaks’ who will leave your property cleaner than when they found it, and accidental damage is often not included, this before signing on the dotted line.
Every home is unique, so why shouldn’t the cover be as well? Look for companies that provide bespoke quotations for each client too. There are insurers out there that specialise in providing this type of cover, but not all do. They can make sure you get the best and most appropriate cover for your needs.
Price comparisons are never fun to do, but it could save you a significant amount of money if you spend a little time shopping around. Landlord insurance certainly has a lot to recommend it if you’re serious about expanding your property portfolio.