Q: For a client who has multiple buy-to-let properties and is looking for some insurance to cover his entire portfolio, what options are available?
A: You might think that all but the most inexperienced landlords would be aware of the potential benefits of insuring all of their rental properties under one consolidated portfolio policy.
However, from our experience at Source Insurance, it is remarkable just how many properties some landlords manage to acquire before they move beyond insuring each one separately at the time of purchase, and just letting those policies renew.
I would advise any buy-to-let client to get a quote for a portfolio policy as soon as they have more than one rental property. There are many advantages to doing so.
First, there is the convenience of having all properties on a single portfolio policy sharing the same renewal date, rather than having multiple policy renewals to remember.
Second, there is the peace of mind that comes from knowing that all their properties enjoy the same levels of cover, rather than finding that some are subject to different limits or exclusions and different claims handling procedures because they are with different insurers.
Third, there is the security of knowing that you are covered by a bona fide specialist Let Property policy – which all portfolio products are – not just a slightly modified standard household product like many of the cheapest single property BTL policies.
Also that your policy is provided by quality insurers who are experts in Let Property Owners Risks, such as Towergate, Aviva, NIG, RSA, Zurich, LV=, and Novae.
In the end however, it is the financial benefits that are likely to be the most compelling argument for a client to cover all of their properties on a consolidated portfolio policy. Insurers offer better rates for portfolios, and in general, the larger the portfolio the greater the savings.
Our Let Property team confirms that, compared with the ratings for single properties, there are some savings to be had by insuring even a handful of properties as a portfolio. However, they also report that the best rating advantages for portfolio policies start at 5+ properties.
The buying power that can be derived from a portfolio of properties for which the premium is likely to run to thousands of pounds rather than hundreds, is considerable.
However to make the most of that buying power, the client should ask their broker to arrange cover through a BTL portfolio specialist, so they can not only tap into the negotiating skills and knowledge – but also the additional leverage of the thousands of other property owners we work with, in order to gain access to truly market leading rates and terms.
