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Potential2lettings are an established property letting agents covering a wide ranging area including Liverpool, Wirral, Ellesmere Port and Chester. We specialise in residential lettings and property management and we have over 12 years combined experience in the local lettings market. Our team of professional letting agents and property managers will work with you to ensure a smooth, professional and rewarding relationship.

1 Oct

Reducing Landlord Portfolio Insurance Costs

Written by Jon Bieri - Director on Thursday 1st October 2015

Landlords are very much on the government’s radar in terms of increasing the taxes (both direct and indirect) that they have to pay. Letting agents should not just be a rent collection service, we also need to be pro active when it comes to reducing the overall costs landlords face in regards to insurance on their portfolio

As I have owned a large portfolio of investment properties in and around Liverpool for the last 10 years or so, landlord insurance costs is an area I am very much familiar with, in this article I am going to show landlords ways in which they can reduce there premiums.

In this article I am primarily, focussed on landlords who own multiple properties, as the savings can very substantial the more properties you own and portfolio landlord insurance won’t be available to all, i.e. it will depend on the number of properties you own.

1. Do you have a standard excess? Does your portfolio make lots of insurance claims?

I have an excess of £500 on my properties, this is because I don’t make small claims, and this is because it takes time and effort making claims and can disrupt the re-letting of your property. You could increase this to a £1,000 perhaps. The point is…the excess can be changed.

Get your landlord portfolio insurance broker to play around with these figures and see what difference it makes to your insurance premium. Also if you regularly make smaller claims, think about the time and effort this takes and also the potential impact on your landlord insurance renewals costs. Is it worth it?

2. Rebuild cost……. I can build a castle at those prices!

It’s an area I had not paid much attention to until recently. You know the term index linked? Well it seems short hand for being over protected, over insured and thus over paying for your landlord portfolio insurance!

Review all your rebuild costs, it is really going to cost that much to rebuild that house in that area. Remember who initially set these figures? Yes, the surveyor (the very risk adverse surveyor) who initially valued your property. Remember value and rebuild costs are too very different values!

3. Using specialist portfolio landlord insurance brokers/companies

If you rent to tenants on housing benefit, some company’s will either refuse to quote or hike up the premium, so shop around and find someone who is used to dealing with this sector so you can get effective rates for your portfolio.

Whatever you do, don’t lie and say you don’t rent to housing benefit tenants, when you actually know the insurance company specifically prohibits this tenant profile. And if you are unsure, double check, because if you ever come to make a claim this will invalidate your insurance.

Over the years I have substantially reduced my portfolio landlord insurance by using the above methods. If you want to discuss this further feel free to contact me, as I can put you in contact with my insurance broker.

To learn more about my insight into the Liverpool property market click the link to read the article. You may also be interested in my article for Rental property investment in Liverpool

Thanks for reading
Potential2Lettings, letting agents covering Liverpool, Ellesmere Port and Chester

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