Portfolio landlords often have more complicated insurance needs than landlords with a single rental property.
That does not mean the process has to be difficult, but it does mean the insurance should be reviewed properly.
If you own several properties, your insurance should reflect the real shape of your portfolio. It should consider the different property types, tenant types, rent levels, rebuild costs, occupancy patterns, claims history, excesses, unoccupancy conditions and risks across the whole portfolio.
A one-size-fits-all quote may look simple.
But simple is not always suitable.
Every property in a portfolio is not the same
A landlord may own five, ten, fifteen or more rental properties, but that does not mean every property carries the same risk.
One property may be a standard single let. Another may be an HMO. Another may be a flat. Another may be older, converted, leasehold, recently refurbished or temporarily empty.
Tenant types may also differ.
Some properties may be let to professional tenants. Others may be let to students, benefit-assisted tenants, company lets, supported living occupants or other arrangements.
The insurance needs to reflect those differences.
If the quote treats the portfolio as one generic block of property, important details may be missed.
Tenant type must be reviewed property by property
Tenant type is one of the key areas portfolio landlords need to get right.
An insurer needs accurate information about who occupies each property. If tenant type has changed, or if assumptions have been made, the cover may not properly reflect the real risk.
This matters because tenant-related issues can affect cover, underwriting, premium and claims.
A portfolio review should not simply ask whether the landlord has tenants.
It should ask what type of tenants are in each property, whether any tenant arrangements have changed, and whether the insurer has the right information.
Sums insured should not be copied and pasted
The buildings sum insured is too important to be treated as a routine figure.
For portfolio landlords, there can be a temptation to carry values forward year after year, especially if renewal documents appear familiar.
But rebuild costs can change. Properties may have been extended, improved, converted or refurbished. Some properties may have unusual construction, difficult access, higher reinstatement costs or features that make them more expensive to rebuild.
If sums insured are wrong across several properties, the landlord may face underinsurance across the portfolio.
That is not a small administrative issue.
It can become a major financial problem when a claim is made.
Loss of rent cover must reflect the income at risk
Loss of rent cover is particularly important for portfolio landlords.
A landlord with multiple properties may rely on rental income to support mortgage payments, maintenance, tax liabilities and other costs.
If one property cannot be let after an insured event, the impact may be manageable. If a higher-rent property is affected, or if more than one property is affected, the financial pressure can increase quickly.
A proper portfolio review should ask whether loss of rent cover reflects current rent levels and whether the cover period is realistic.
The question is not simply whether loss of rent is included.
The question is whether it is adequate.
Unoccupied property conditions can be harder to manage in a portfolio
Void periods are common in rental property.
For portfolio landlords, they are almost inevitable.
One property may be between tenancies. Another may be undergoing works. Another may be waiting for a new tenant, a sale, licensing, repairs or refurbishment.
Unoccupied property conditions can be strict. They may require inspections, security measures, heating, water shut-off or notification to the insurer after a certain period.
A landlord with several properties needs to know where each property stands.
If unoccupancy is not tracked properly, a landlord may unintentionally breach policy conditions.
That is why a portfolio insurance review should look at occupancy and voids carefully.
Excesses can make a big difference
A one-size-fits-all quote may look competitive, but landlords should check the excesses.
Are they the same across the portfolio?
Do different excesses apply to escape of water, subsidence, malicious damage, accidental damage or other claim types?
Has a lower premium been achieved by increasing excesses?
Would the landlord be comfortable with the excess if multiple claims occurred?
The premium is only part of the cost. The excess matters too.
A portfolio landlord should understand the practical impact of the policy, not just the headline renewal price.
Malicious damage and tenant-related risks need checking
Tenant-related risks should not be assumed.
Different policies can treat malicious damage by tenants in different ways. Some may include it. Some may restrict it. Some may apply conditions, limits or exclusions.
For portfolio landlords, this should be checked carefully.
If tenant damage occurs at one property, the cost may be manageable. If a policy weakness exists across multiple properties, the exposure could be much larger.
A proper review should consider how malicious damage, accidental damage, tenant type and claims evidence are dealt with.
Portfolio structure matters
The way the insurance is structured can also matter.
Some landlords may have all properties under one policy. Others may have several policies with different renewal dates, insurers, terms and excesses.
There may be good reasons for either approach, but the landlord should understand the structure.
- Are renewal dates aligned?
- Are cover levels consistent?
- Are there different policy conditions for different properties?
- Is the landlord comparing the whole portfolio properly?
- Are any properties falling outside the main arrangement?
A portfolio landlord should not be left with confusion about what is covered, where and on what terms.
A cheap portfolio quote may not be the best portfolio solution
Every landlord wants competitive insurance.
Portfolio landlords are no different.
But the cheapest quote is not always the best answer if it does not properly reflect the portfolio.
A quote may look attractive because the premium is lower, but landlords should ask what sits behind that price.
- Has the cover changed?
- Are the sums insured adequate?
- Is loss of rent strong enough?
- Are unoccupancy conditions workable?
- Are tenant types correct?
- Are excesses acceptable?
- Are all properties properly described?
If the answer is unclear, the quote should be challenged before renewal.
Your broker should be doing more than renewing the schedule
A portfolio landlord should expect their broker to do more than issue a renewal schedule.
The broker should ask questions, review changes, check the market and help the landlord understand whether the insurance remains suitable.
If the broker only becomes active after the landlord obtains another quote, it is reasonable to ask whether they were really working hard enough before renewal.
A portfolio renewal should be earned.
It should not be assumed.
Why NetRent and Clear can help portfolio landlords
NetRent has worked with landlords for 23 years. We understand rental property and the practical issues portfolio landlords face.
We know that a portfolio is not just a list of addresses.
NetRent speaks to landlords directly, gathers relevant information and asks the questions that matter before passing details to Clear’s dedicated NetRent insurance team.
Clear Insurance Management then use their specialist broking expertise to seek suitable landlord insurance options.
Importantly, Clear do not simply roll landlord policies forward at renewal. They re-broke landlord insurance to help ensure landlords are getting the best available price and policy for their circumstances.
For portfolio landlords, that approach matters.
Do not renew the whole portfolio on assumptions
The more properties a landlord owns, the more important it becomes to avoid assumptions.
- Do not assume tenant types are still correct.
- Do not assume sums insured are accurate.
- Do not assume loss of rent is adequate.
- Do not assume unoccupied property conditions are workable.
- Do not assume a cheaper quote is automatically better.
- Do not assume your existing broker has properly reviewed the whole portfolio.
A portfolio is too important to renew blindly.
Contact NetRent before you renew
If you are a portfolio landlord, do not accept a one-size-fits-all insurance quote without proper review.
Send your renewal to NetRent before you commit.
Let us review what you have been offered. Let us ask the right portfolio-specific questions. Let us see whether Clear’s dedicated NetRent team can provide a competitive alternative that properly reflects your properties, tenants and wider circumstances.
You may save money. You may improve your cover. You may discover that your portfolio has not been reviewed in enough detail.
But most importantly, you will not be renewing on assumptions.
Call NetRent: 01352 721300
Email: insurance@netrent.co.uk
Portfolio landlords need portfolio insurance thinking. Before you renew, send your landlord insurance renewal to NetRent.