If you’ve invested in multiple houses to build up a property portfolio, you’ll know how important it is to look after your investments and ensure you have all the right property owner’s insurance for each.
If you are letting your properties out, a standard homeowner’s insurance policy for each house is not going to cover you satisfactorily. These types of policies are meant for properties occupied by their owners and won’t cover any of the types of losses you might experience as a landlord. As a landlord your liabilities will be greater and therefore property owner’s liability insurance (also known as Landlord’s Liability Insurance) is vital for each of your properties which is let out in order to insure against potential losses.
Residential property insurance policies are designed to meet the unique needs of residential landlords or buy-to-let owners. Here are some of the things you’ll need to consider for each of the properties in your portfolio.
Building Cover
Consider how much it would cost to rebuild each of your properties in entirety, for example in the case of a fire or natural disaster which completely destroys the building.
Loss of Rent
Similarly, you should also take into account the amount of rent you would lose in a worst case scenario such as the above. This will also cover less drastic circumstances such as losing rent in the short term due to repairing damage sustained to a property.
Landlord’s Contents
If you have furniture which belongs to you in any of the properties then you will also need to add landlord’s contents to your insurance for those properties.
Other Areas to Insure
You may also want to consider adding additional areas to your standard property owner’s policies such as alternative accommodation costs, legal protection and rent guarantee.
Other vitally important insurances to consider is are public and property owner’s liability. The last couple are to protect you in the event of anyone injuring themselves while in your properties. Whether a tenant or visitor is injured as a result of your property you will be held liable so it’s important to insure against this. A tenant could trip over or hurt themselves on a badly maintained part of the property and you would then be liable. Visitors to the property are also at risk of injuring themselves in the same ways.
If you have any employees working for you to maintain or develop the properties, then you will also need to consider getting employer’s liability insurance. If an employee gets ill or is injured as a result of working for you then they could make a claim against you.
Multiple Properties
Naturally you will need to consider which of the above insurances are required for each individual property that you have in your portfolio. Getting the right insurance is just as vital as finding the right tenant for any and all of your investments.
Take a look at Goldcrest Insurance’s range of Property Owners Insurance and please get in touch if you’d like us to help you decide what the right level of insurance is for all of the properties in your portfolio.
