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Multi-property landlord insurance: one policy or one per property?

Multi-property landlord insurance puts several lets on one policy. See when a portfolio policy works, when separate ones suit better and what to check.

Multi-property landlord insurance lets you cover several rented homes under one policy, with one renewal date, one set of documents and usually one point of contact. It suits many landlords well, but separate policies for each let can make more sense when your properties are very different, when one property carries a much higher risk than the rest, or when you want each let's claims and terms kept apart.

The rest of this guide sets out how each option works, the downsides worth weighing up, and what to have ready before you ask for quotes.

What is multi-property landlord insurance?

A multi-property or portfolio policy is a single landlord insurance contract that lists every property you let. Which? explains that portfolio policies are available to landlords who own several rented homes and want to insure them together.

Inside one policy, each property normally has its own schedule entry: the address, the rebuild value, the contents value (if you insure contents), the type of tenant and how the property is let. The sections of cover are the same ones you would find on a single landlord policy, and Which? lists the main ones:

• Buildings: damage to the structure of the property.
• Landlord contents: items you provide, such as carpets, furniture and appliances.
• Property owner's liability: cover if a tenant or visitor is injured at the property.
• Loss of rent: income lost while the property can't be lived in after an insured event, which Which? says is usually part of a standard landlord buildings policy.
• Rent protection: cover if a tenant falls into arrears, which is a separate optional extra.

How many properties do you need for landlord portfolio insurance?

There is no legal minimum. Each insurer decides how many properties it will accept on a portfolio policy, and the threshold varies, so it is worth asking rather than assuming.

The number people often quote, four, comes from mortgage lending rather than insurance. The Bank of England's Prudential Regulation Authority says in its buy-to-let underwriting standards that borrowers with four or more distinct mortgaged buy-to-let properties should be treated as "portfolio landlords" by lenders. That label affects how a lender assesses your borrowing. It does not decide whether an insurer will put your lets on one policy.

Landlord insurance for multiple properties: one policy or separate ones?

Here is how the two approaches usually differ in practice. Policy terms vary, so treat this as a list of things to check rather than a promise of what any one policy does.

What are the downsides of insuring all your lets on one policy?

A portfolio policy is convenient, but convenience is not the only test. These are the points worth thinking through before you put everything in one place.

One claims record across the whole portfolio

On a single policy, every claim from every property sits on the same claims history. If one property has a run of escape of water or malicious damage claims, ask the insurer how that is treated at renewal: whether it affects only that property's terms or the terms for the whole policy. With separate policies, a difficult property's history stays with that property.

Mixed property types

A portfolio of identical two-bed flats is simple to insure together. A mix of a single family let, a student house and a house in multiple occupation is a different matter. GOV.UK says a home is an HMO if at least three tenants live there forming more than one household and they share a toilet, bathroom or kitchen, and large HMOs (five or more tenants) need a council licence. Insurers ask how each property is let because the answer changes the risk, and not every portfolio policy accepts every type of let. If one property doesn't fit, you may end up with a portfolio policy plus a separate policy anyway.

Underinsuring a single property

Each property needs its own accurate sum insured, based on what it would cost to rebuild, not what it would sell for. Rebuild cost specialists BCIS explain how the average clause works: if a property is insured for only half of its rebuild cost, the insurer may pay only half of a claim, even a small one. On a portfolio policy it is easy to set values once and let them drift, or to apply a rough figure across similar-looking properties. One underinsured property can mean a reduced payout on that property's claim, however well the others are insured.

Unoccupancy rules

Empty properties need particular care. Which? reports that many home insurers limit full cover to around 30 consecutive days of a property being empty, that Defaqto found 96% of 255 buildings policies only cover an empty property for up to 60 days, and that insurers may restrict or remove cover for theft, water leaks or accidental damage after that. Landlord policies set their own limits, so read the unoccupancy clause carefully. On a portfolio policy, check whether the limit applies property by property and what you need to do when one let falls empty (for example, telling the insurer, turning off the water or arranging regular inspections). A property under refurbishment may need different cover altogether.

When do separate policies make more sense?

Separate policies for each let tend to suit landlords when:

1. One property is a very different risk from the rest, such as an HMO or a property standing empty for works.
2. You own a flat in a block where the freeholder already insures the building, so you need landlord contents and liability but not buildings cover. Which? notes there can be gaps in block cover for damage that starts inside individual flats, so it is worth checking what the block policy covers.
3. Different properties have different mortgage lenders with specific cover conditions. Which? notes that you generally can't take out a buy-to-let mortgage without proof of buildings insurance and that most lenders specify a minimum level of cover.
4. You plan to sell one or two properties soon and want to cancel cover cleanly.
5. You own some lets personally and some through a limited company, as the policyholder needs to match the owner.

None of these rules out a portfolio policy, but each is a good reason to ask whether one policy really fits all of your properties.

Landlord contents insurance: what to check

If you let furnished or part-furnished properties, landlord contents cover is a separate decision for each let, even on a portfolio policy. Which? points out that the level of contents cover you need depends on whether the property is furnished or unfurnished, that it only pays out on items you provide, and that tenants' own belongings aren't covered, so tenants need their own policy.

When you are comparing landlord contents cover across properties, check:

• the contents sum insured for each property, not one total spread across them;
• whether accidental damage by tenants is included or an add-on;
• any single-item limits for expensive appliances;
• the excess, which may differ for escape of water or malicious damage claims;
• whether contents cover still applies while a property is empty between tenants.

For more on what drives the premium, see Landlord insurance cost: what sets the price and what to check.

What to have ready before getting quotes for multiple properties

Whether you go for one policy or several, insurers will want the same details for each let. Getting them together first makes the quotes far more reliable.

1. The full address and type of each property (house, flat, HMO, converted building).
2. A rebuild cost for each property, worked out separately.
3. The type of tenant at each property and how it is let (single let, room by room, holiday let).
4. Whether each property is furnished, and a realistic contents value.
5. Any periods each property has stood empty, and any planned works.
6. Claims at each property over recent years.
7. The lender for each mortgaged property and any insurance conditions it sets.

Accuracy matters. If the policy is treated as consumer insurance, the law requires you to take reasonable care not to make a misrepresentation. If it is treated as business insurance, for example where a limited company owns the properties, the Insurance Act 2015 requires you to make a fair presentation of the risk. Either way, a wrong answer about one property can affect a claim on it.

If you'd like a specialist to look at your properties, you can get home insurance quotes through Kompare: you fill in a short form and a specialist FCA-authorised broker from our panel contacts you with quotes. Kompare is not an insurer and does not give advice, so the broker can talk through whether one portfolio policy or separate policies fit your lets.