- What is a property portfolio
- What are the benefits of having property portfolio insurance instead of insuring them on an individual basis?
- Can you get insured for commercial premises, on a residential portfolio?
- If one of your properties has suffered from subsidence can this still be included as part of the portfolio.
- Will a bad claims history affect my portfolio?
These are all common question that are asked re portfolio cover. Here are the Answers…
- A property portfolio is accumulated by a property investor who over times buys property as an investment which in turn transforms into a portfolio. A property portfolio operates for 2 properties plus.
- The biggest benefit of having all properties insured on a single policy is, you will never miss place a policy or miss a renewal date. For example if you have 10 properties, the insurance for this is tough to manage and more often than not a renewal can be missed. So this really helps out with the management side. A major benefit is that if you do accumulate a lot of properties then again say if you have 10 … you should at least get one premises insured for free … more often than not 2. It is also a big advantage when it comes up for renewal and you are not happy with the premium or company, it is an easy exercise to present to another insurer to get a quote from.
- A lot of insurers will either like one or the other. Commercial property insurance and residential property insurance carry two different risk elements all together. The reason of preference is usually down to an insurers bad claim experience in a certain field. But yes there are definitely insurers out there who will look at combing a commercial and residential property portfolio.
- Of course it can , as long as the right lines have been followed to get the issue rectified, ie the correct contractor and a structural engineers survey has been done … and sometimes a period of monitoring for movement. But if all has been done properly then there is no reason why cant insure properties which have suffered subsidence.
- It all depends on how bad the claims history is … if you are paying a premium of 10k and your claims history is constantly 15-20k worth of claims each year, then there is no way your premium will stay low. Running a good property portfolio is not about just letting your properties get into bad state of repairs and claiming at any chance , it is about keeping them in good state of repair and making sure that if a serious claim was ever to happen you can then use your policy to full effect.
So as you can see running a property portfolio insurance is as much about yourself as it is the insurer. If it is run well then premiums will stay low, which in the end is what every Landlord wants. Of course you can have the occasional claim, but 10 times better less than more.
