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Landlord portfolio insurance: a cost saving guide

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If you own not one buy to let property but several, keeping track of vital insurance cover for each one might prove a problem.

Landlord portfolio insurance offers a way of resolving any such issues – and may help you save money on your total insurance bill into the bargain. Here’s how: 

The principle of multiple property insurance 

  • property portfolio insurance allows you to insure multiple buy to let properties under a single policy (even if you have a mixture of property types such as HMO or mixed use properties);
  • that means there is only one renewal date, rather than a host of different dates throughout the year – which you dare not miss or overlook, at the risk of leaving one of your properties without the critical protection of landlord insurance; 
  • monitoring and checking different renewal dates around the clock is likely to be time-consuming – and therefore expensive on your administrative resources; 
  • the single renewal date of landlord portfolio insurance saves you that time and money; 

The more you insure, the more you save 

  • multiple property insurance is also based on the very simple principle that the unit costs of insurance decline as it covers more properties – the more of them you insure, the more you save; 

Your buy to let mortgage 

  • if you have wanted to add to your property portfolio any time since the end of September 2017, you had to have passed stringent tests on the affordability of the loan in terms of the profitability of the whole of your property portfolio;
  • this in itself means taking every opportunity to save money on your landlord portfolio insurance, and keeping it in place is also likely to be a condition of the mortgage you obtained;

Describe the properties

  • if you are looking to save money on insurance for multiple properties, it is important that you give us as much detail as possible about the size, nature and types of tenant you intend to let them to;
  • the clearer the picture we have of the risks, of course, the more competitive we are able to make the quotations we offer;
  • at UKinsuranceNET, we have no restrictions on the types of tenant you let to, whether professionals or recipients of Universal Credit;

Property valuations

  • your total building sum insured, for example, needs to envisage a worst-case scenario in which a major event destroys all of your properties so that the sites need to be cleared and the buildings completely reconstructed; 
  • the reconstruction cost is likely to be entirely different to the market value of any of the properties, of course, and an accurate valuation is essential to selecting the total buildings sum insured;
  • this, in turn, determines the price of the premiums you pay and your scope for making any savings on those costs; 

Buying your landlord portfolio insurance 

  • landlord insurance is a specialist product, and multiple property insurance for landlords is a still more specialist product; 
  • so that you are sure of tailoring this vital safeguard to suit the particular needs and requirements of your own buy to let business, therefore, you might want to draw on the experience and expertise of a specialist provider – such as ourselves here at UKinsuranceNET. 

You and your mortgage lender are looking carefully at the profitability of your buy to let business – especially when you own multiple properties. Since a significant part of your overhead expenditure is likely to go on landlord portfolio insurance, it is important to make cost-savings wherever they may be made.