Property Portfolio Insurance for a Block of Flats
We have taken on 3 property portfolios this week and all have varied in size and shape!
The first property portfolio insurance we set up was for a large property company which had just purchased a huge portfolio of properties from another company.
The portfolio consisted of 180 blocks of flats and the total rebuild value was 180 million.
So all the usual covers were needed to be included for this large portfolio insurance of blocks of flats.
They required :
- Buildings Insurance
- Contents Insurance
- Liability Insurance
- Public and Employers Liability
- Communal Contents
- Loss of Rent Rental Guarantee Insurance
- Terrorism Cover
- Theft, malicious damage and accidental damage
- Flat roof Cover for any lifts which are operated inside any of the blocks
- Directors and Officers Insurance
All of these Insurance covers are pretty much standard when you have a portfolio policy.
The interesting factor was the premium for the rental guarantee policy which came out at only 10,000.
For a portfolio which consists of so many tenancy agreements this rate for rental guarantee insurance is extremely keen and just shows the sort of discounts that can be had when insuring in bulk.
The total premium for the entire risk was in the region of 100k and as ever we used an A rated insurer to place this.
When insuring a portfolio of blocks of flats up to the value of 180 million, the premium is fantastic but why is this, well it was mainly down to it being an extremely well run and managed with low levels of claims prior to purchase.
Portfolio Insurance for HMO Properties :
On a different scale to that huge block of flats portfolio we had a smaller investor come to us to insure his portfolio of HMOs (houses of multiple occupancy).
The client had 8 properties which were all HMOs and were all to be insured in his company name.
The tricky part was the properties were being looked after by a claims management company and the tenant type was DSS referral for all properties.
Problem here, as a lot of insurers do not like other companies looking after the properties and insurers also shy away from the tenant type being DSS referral.
The problem with a DSS referral tenant is that the landlord has no control over which tenants occupy his HMO.This is because the property management company look after the property and they take control of the DSS tenants therefore meaning zero control by the property owner over what happens to his property and who tenants it.
DSS non-referral tenant types in this instance are fine, as what that means is the property management company will have control over the property, but they will leave the contracts of the DSS tenant type to be signed off by the landlord. This means the landlords will approve who goes in and out of their property.
Although this small property portfolio came with a bit of a risk and high ratings we still managed to beat the clients existing deal saving them good money.
Small HMO Property Portfolio Insurance
The last portfolio risk I want to talk about this week was a small HMO property portfolio a client had just purchased.
It consisted of 3 houses all with professional tenants inside.
The only issue with this risk which made a few insurers turn away was that the bedrooms had cooking facilities inside them.
The good thing was that the cooking facilities were not just hot plates sitting on the side.
The cooking facilities in the rooms consisted of designated cooking areas which were made up of work tops and integrated cooking apparatus.
Due to this we could give an extremely competitive rate with all the Usual Insurance cover he should have and good advice to the client, so he knew his HMO portfolio insurance was fully covered.
If you are a property owner and have a portfolio no matter how large or small then please give us a call and speak to one of our experts on 020 8440 7400.
