Protect Your Portfolio With Multiple Property Insurance
If you are a landlord with multiple properties in your portfolio
, chances are those properties contribute significantly to your livelihood. You rely on the monthly rent as income, whether that money goes towards the mortgages on those properties or you use the income to help ends meet elsewhere. As such, it is crucial that you maximise your return while at the same time minimising costs, and an important step towards minimising costs is to ensure you have adequate multiple home insurance coverage on all your properties.Without adequate coverage, the financial effects could be devastating in the event one of your properties is damaged and requires repair or becomes uninhabitable, or if one of your properties sits empty because it is between tenants. Equally so, you will feel the financial loss if any of your tenants are late in paying their monthly rent. Landlords insurance can protect you should any of those situations arise, and the most convenient and cost effective way to ensure coverage applies to all your properties is to obtain multiple property insurance.
Multi property insurance is designed to offer landlords with three or more properties, including blocks of flats, the opportunity to protect their investments under one landlords insurance policy. By insuring all your properties together rather than going through the hassle and expense of insuring each one separately, you not only will have less paperwork to complete and keep track of, you will also be able to take advantage of cost saving benefits.
Financially, it makes sense to obtain multi property landlords insurance, since it would cost you a lot more to obtain separate policies on each property, and as a further cost effective measure you may tailor the policy to include the features that best suit your needs. These features include building coverage, contents coverage, legal expenses coverage and rent guarantee.
Building coverage - not only do most lenders require property owners to have building coverage as a condition of receiving a mortgage, you would run too great a risk in not having it. Whether you let your properties on a residential or commercial basis, building coverage is a necessity that will protect you should the structure of any of your properties suffer damage due to an insurable event. As part of your multi property landlords insurance policy, you also have the options of including coverage for malicious damage and compensation for a set percentage of rent loss should the property become uninhabitable as the result of insurable damage.
Contents coverage - even if you are letting unfurnished properties, they will still contain contents such as curtains, carpets, appliances and fixtures that belong to you. If items belonging to you are stolen or destroyed in an insurable event, contents coverage will compensate you for the cost of replacing them. Since those costs could very well be substantial, this coverage is worth considering, particularly since it also includes the option of liability coverage should a tenant claim injury from a defective feature considered to be the landlord's responsibility to maintain.
Legal Expenses coverage - this type of coverage is designed to protect landlords against the risk of incurring costly legal fees. If you are forced to take legal action against any of your tenants, either to evict them or compel them to pay rent, or if any of your tenants file a claim against you, legal expenses coverage will help repay your expenses, including solicitor fees, court costs and damages amounts awarded.
Rent Guarantee - landlords unfortunately cannot count on the certainty of receiving rental payments on time, as demonstrated by National Landlords Association survey results published earlier this year revealing that in a six month period almost forty four percent of landlords reported experiencing rental arrears. Even if you are fortunate enough to let your properties to the most reliable of tenants, circumstances beyond their control such as a job loss or serious illness could make it tough for them to meet their monthly payments. Rent guarantee coverage ensures that you will still receive payments every month, for a pre-determined period, if any of your tenants default on their rent.
An insurance specialist can discuss the available features of landlords insurance with you to help you determine the best policy to fit your needs and budget. When discussing the available options, be sure to mention that you have multiple properties to insure, so you can receive any discounts and benefits that come with insuring your entire portfolio under the same policy. Once you have obtained your multiple property insurance, you can rest easy knowing that your insurance needs have been taken care of and you and your properties are sufficiently protected.
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