Investing in property often involves years of hard work and canny decisions to build up a diverse and successful portfolio. Something so precious should not be left unprotected and vulnerable to loss or damage by the whims of fate. Property portfolio insurance offers a straightforward means of protecting ones assets against risk and loss and helps to provide peace of mind concerning ones future financial security.
What is Property Portfolio Insurance?
Property Portfolio Insurance is sometimes also known as Landlords Insurance and like any typical insurance, its primary purpose is to protect your hard earned assets from potential risks. The key benefit of this insurance is that multiple properties across an entire portfolio can be consolidated into one policy, making the organisational logistics more straightforward and simpler to manage. Different policies cover differing circumstances and there are certain criteria that must be met to qualify, depending on the chosen insurer. With a wide range of insurance choices available it is easy to find the right match for ones requirements, especially when referred by an online estate agency.
Property Portfolio Insurance covers many of the same risks that general building insurance does, but it also incorporates specific inclusions that are highly relevant to landlords and commercial property owners alike.
A typical insurance policy provides coverage for such issues as:
- Intentional and unintentional property damage by tenants, accident or land slippage
- Liability claims for injury
- Liabilities that management committees may incur
- Loss of Income caused by rent defaulters
- Loss of Income through empty and unleased properties
Why is Property Portfolio Insurance necessary?
Because your property assets have accrued over time it would be devastating to see them lost with one fell swoop. Disasters, accidents, emergencies and unethical tenants can cause this to happen and insurance is one sure way to help minimise the risks. When property investment becomes closely tied with one’s livelihood, income and day-to-daybusiness there is a duty to all parties concerned to operate within the law and also to protect ones financial future and vulnerable tenants. Operating without such coverage is foolhardy and dangerous, both legally and financially.
As well as protecting ones assets, Property Portfolio Insurance can also offer significant savings due to the unique way multiple properties are consolidated into one overarching policy. Tax returns are simplified, bookkeeping fees are reduced, and organisational headaches are avoided by dealing with only one set of paperwork annually. Co-ordinating the details of a large number of properties is difficult and increases the chances of vital details being lost in the shuffle and policy renewal dates confused and even missed.
An added benefit is that combining policies together and having them come under the umbrella of one insurer often entitles one to hefty discounts due to the amount of business one brings to the chosen insurance company. Such companies will offer much more competitive rates than one could possibly find when ensuring each property individually.
Property Portfolio Insurance is therefore a vital means of ensuring ones portfolio continues to grow but avoids the risks that could compromise ones hard work. With competitive pricing and the multiple benefits such insurance affords, there really is no reason to do business without an adequate safety net in place.