The real estate industry in the UK faces several challenges which can be detrimental to both the businesses and the individuals involved. Between tenants wreaking havoc on their rental homes and extreme weather delaying start dates for construction, there’s a long list of factors that can become a headache for those in the property sector.
The good news is there is a range of insurance policies that can provide a certain level of protection against unexpected events and other issues that may crop up. From developer insurance to managing agent insurance, there’s a scheme to keep you covered. So, whether you’re in the early stages of construction, in the middle of a project or managing a property, there’s always something to help put your mind at ease.
Here, we outline the different types of real estate insurance and what each of them typically covers.
Property developer insurance
Property developers will need to take out insurance before construction begins to provide protection from multiple angles. Every insurance policy is different but ideally, it will cover increased costs, like what could be incurred if a snowstorm meant work couldn’t begin on schedule.
Public liability is usually also covered in property developer insurance. This is crucial to protect your business financially in the event a member of the public is injured as a result of the work your team is carrying out. The risk of this happening increases in high-density areas where there are many pedestrians.
Construction Project Insurance
When taking on a new construction project, it’s important to ensure you have appropriate insurance to cover increasing costs on materials and labour shortages, among other barriers to getting the job done. It’s also sensible to take out latent defects insurance, which will protect you and your project if any of your third-party suppliers haven’t got adequate cover.
Managing Agent Insurance
It’s crucial for managing agents to ensure their clients’ assets are protected against anything that could cause them financial distress or damage their reputation. Managing agent insurance typically covers damage to the property caused by tenants, eviction of squatters, tracing a loss, and the farming or production of illegal drugs on the property.
Many insurance providers are happy to tailor their service to suit your individual needs, so if you require cover for something that is not usually included, ask if this can be included as part of your policy.