What it covers and why you need it

When you’re a landlord, there’s a lot more to consider than simply taking out building insurance. With property portfolio insurance you can easily insure all of your assets under a single policy with one renewal date. But what exactly is property portfolio insurance?

Rebuild costs

First and foremost, you need a policy that covers the costs of rebuilding each of your properties. This isn’t the same as the market value, it specifically relates to the costs of building the property from the ground up if it was completely destroyed, including walls, doors, windows, the roof, and kitchen and bathroom fittings.

Loss of rent

If a natural disaster, fire, flood, vehicle collision, or falling tree, lamp post or satellite, caused one of your insured properties to become uninhabitable, you risk losing the rent money you’d usually receive from tenants. A good property portfolio policy should cover loss of rent and the cost of temporary accommodation for your tenants for up to a few years after the incident.

Liability insurance

For commercial properties or large portfolios of residential properties, you may employ staff to help you with building maintenance. If this is the case, employer’s liability insurance will protect you against claims for accidents and injuries in the workplace and damage to third-party property. Landlord liability insurance will protect you from injury or damage claims related to your rental property. … It is a type of public liability insurance that protects landlords from compensation claims made by a third party such as a tenant, visitor or a tradesperson.

Contents cover

If your properties are furnished you may also need contents insurance to protect those items from damage and cover the cost of replacement. You can choose new-for-old cover, which replaces items with brand new equivalents, or indemnity insurance, which will give you a cash payout of the item’s value when age and wear and tear are taken into account.

It’s easy to see how individually managing insurance for every asset could become complex, but with a bespoke property portfolio policy you’ll often have a dedicated account manager who will finesse the details for ever asset and give you a clear overview of your properties. At ABIS, we can help you find the right insurance partner to simplify protecting your investment and managing your property portfolio.