Commercial Insurance Articles
Why portfolio insurance with Stride is a wise investment
17 Dec 2015
Where is the threshold at which a landlord becomes the owner of a property portfolio? Many successful people start out with a single property, slowly adding to their portfolio and investing in higher-value properties until the time comes when it needs to be managed as a fully-fledged business rather than a small enterprise.
The challenges of managing a property portfolioA growing portfolio comes with its own challenges. If you manage the portfolio in addition to another profession, the burden of responding to tenants, arranging property maintenance and filling paperwork can swallow up all of your free time. If you miss something out amid the bustle, you could be facing fines, loss of reputation and lost rent.
As in any field of business, to make the most of your property portfolio, you will need to make some wise decisions about what you delegate to other people and what you keep within your own direct control. To be able to entrust an element of your portfolio to someone else, for example employing an agency to manage tenant reference checks, you must be confident that the agent or partner is trustworthy and professional .
Why your coverage level mattersThe risks involved in owning a property portfolio mean that having the right insurance is vital. Without the correct level of cover, your properties could become more of a liability than an asset. As you build your portfolio you are likely to insure each property individually, but at some point it will make financial sense to opt for a portfolio insurance policy.
Property portfolio insurance can cover all the areas you would expect as a landlord: buildings and contents cover; compensation for loss of rent; protection against malicious damage by tenants; and a contribution towards legal costs and damages arising from owner’s liability claims. However, a product designed with a portfolio in mind offers further advantages, such as having a single renewal date and being able to authorise a family member or associate to substitute for you in making changes to the policy.
The advantages of using managed portfolio insuranceHandling your property portfolio as a single asset makes it much easier to obtain comprehensive cover. Insuring as a portfolio will allow you to negotiate more favourable premiums by using your additional buying powers of multiple properties.
Using a portfolio approach also enables you to take a birds’ eye view of your interests. It might be that maintenance costs for one property are disproportionate, or that you had not noticed that one of your properties had contents of considerable value. By managing your properties as a portfolio rather than individually, you will be able to spot anomalies like these more easily.
Could you find a better offer by yourself?In recent years aggregator sites that compare insurance quotes from many companies have become popular. While it might seem like comparing price alone will give you the best deal for each of your properties, in reality it is wise to take a more in-depth approach to whether an insurance policy really offers value for money.
Taking a DIY approach might work for straightforward insurance policies, but when your business is at stake you need to make a more strategic decision. You need a broker with a strong history of insurance and underwriting, and a real understanding of the requirements of property owners, developers and commercial business owners.
Stride is independent, so we are not tied to any particular insurer. This means we can give unbiased advice on what represents the best genuine value for your properties. We have delegated authority from top UK insurers, allowing us to manage and deliver tailored insurance packages for portfolios of all sizes. We deliver the right cover at competitive rates.
Why a tailored policy offers the best valueWe don’t believe in one-size fits all solutions for property owners, because every portfolio is different. We take the time to design a tailored policy that suits the characteristics of your assets, whether it’s a block of flats, residential or commercial properties, licensed premises or another kind of property. We can talk you through the risks and liabilities unique to your portfolio and advise on the best way to protect your interests.
We offer a range of benefits for property owners as standard, including a dedicated account manager, in-house documentation issue, wholesale rates and flexible terms. Most importantly, our advice is wholly independent so we will always help you find a policy that delivers good value. We can even write and tailor insurance cover for your individual requirements.
Why not get in touch to see how you could benefit from working with Stride?