Buy-to-let remains the most robust sector of the UK mortgage market and it’s difficult to see what social/economic factors could change this situation within the foreseeable future.
Indeed, the Association of Residential Letting Agents has predicted that 85% of existing landlords will look to expand their portfolios during 2013 as the buy-to-let market continues to grow in demand and deliver significant financial return.
This is all good news for savvy advisers, so here are a few tips to help you embrace the potential of landlords’ insurance.
Landlords, particularly first time ones, are keen to take professional advice and accidental landlords (e.g. those that have inherited a property or can’t sell, for example) often haven’t realised that they need to change their cover when they rent out their old home. You have three options here:
1) Quote and advise
Fact-find and obtain quotes from panel providers and don’t be scared to give advice. Online systems are useful but don’t discount speaking with your providers directly. They often have some cracking deals that may not be included online. You will also get to tap into their knowledge and experience.
2) Take full control
If you do buy-to-let insurance regularly and have an expertise in it, look to a provider who can give you a bespoke buy-to-let comparative quote system (rather than simply a version of their normal household product).
3) Introduce
If you do not wish to advise on landlords’ insurance you can still earn a valuable commission by introducing them to a specialist provider.
Existing landlords, particularly those with several properties or the desire to expand their portfolio, are always keen to check the competitiveness of their arrangements. So in addition to the options above it is important to also consider helping them insure their entire portfolio under one policy.
Arranging one block insurance streamlines and simplifies cover. Your client will appreciate the administrative benefits of only having one payment and one renewal, but far more valuable is the buying power it delivers in terms of commanding more competitive premiums and flexibility of cover.
A good panel provider should be able to help you put together a solution that not only meets the needs of your client’s entire portfolio but also each of the individual properties insured within it. This will cement your relationship with your client and demonstrate that you are willing to go the extra mile to meet their needs.
The buy-to-let boom is not going to slow down. No matter what your circumstances you can still get involved and fulfil your client obligations, acquire and retain new ones, and enhance your income. Speak to your panel provider, choose a way of writing the insurance that best suits your client and your business, and get started today.
