Types of real estate insurance

Developers, managers and owners who invest in real estate face a unique set of challenges and risks relating to their property portfolio. There are many factors that can impact their assets, both in the long term and on a day-to-day basis.

This article will explore the types of real estate insurance and the reasons why it’s important to have cover, regardless of your specific area of interest.

What is real estate insurance?

If you own, manage or develop any form of real estate, whether residential or commercial, it’s a good idea to have the right cover that will protect you if anything were to go wrong.

Real estate insurance can provide protection against factors such as fire or natural disasters that cause damage to a building or property as well as theft and any losses incurred. This type of policy can also cover loss of rental income and issues relating to portfolio risk.

The cost of real estate insurance is often based on company assets, including the value of the building and any location risks such as flooding – similar to a standard home insurance policy. There are different types of real estate insurance policies that cover particular aspects of the industry.

Property development insurance

This is suitable for developers and can cover factors such as increased costs of materials, contract works, start-up delays and public liability. Projects can differ widely in terms of size and complexity, so it’s a good idea to find a tailored policy for the duration you need.

Construction project insurance

An owner-controlled insurance programme is a specific policy for construction managers that covers almost all liability. New builds or complex projects are likely to need this type of insurance and policies usually include commercial, financial and claims cover, which is particularly important when working with contractors. It’s also a good insurance policy for shop and office projects as well as commercial or residential renovations.

Managing agent insurance

This insurance is for those who manage buildings and look after clients and their assets. Cover will include damage to the building, owner’s liability, eviction issues and losses. As agents are responsible for the safety and security of a building, taking out the correct type of insurance is extremely important to protect themselves, their clients and tenants.

Whether you’re managing a project, you own a building or you’re in charge of a construction company, choosing the right real estate insurance is important to ensure you have the adequate protection that covers all eventualities.