What Level of Indemnity Cover Do I Need to Start Sourcing?

Honestly, we would advise to get the most indemnity insurance cover your sourcing business can afford to get.

If an investor makes a complaint, they aren't going to come to get £100k from you...they are going to try and get a lot more.

Plus don't forget the legal fees that sit on top of this. 

The level of cover insurance companies used is based on your turnover each year, not the value of properties that you're dealing with. If you haven't traded yet, you can use a ballpark to start. 

Talk to an Insurance Provider - Who Knows What They Are Doing

We would always advise to talk to an insurance broker to get their guidance on what cover is best for your business, based on your services. 

They should be asking you detailed questions to get a fuller picture of your services, team, risk levels etc., so they can provide you with an honest and effective quote. 

Make Sure Your Insurance Policy Covers Sourcing and Not Estate Agency

Even though we have spoken at length about SIC codes and our sector being governed in the same way as an estate agency, this doesn't apply for your insurance policies. 

Please, please, make sure your policy states 'Property Sourcing', otherwise you are at risk of your policy not covering you at all. 

We see this mistake being made all the time, as a lot of insurance companies do not understand our sector and dish out standard policies. 

NAPSA Members Get Up to 20% Off PI Insurance

Through our National Association - NAPSA - all of our Members are given the option to get up to 20% off their insurance each year by going through sourcing experts, Insurance-Desk. 

They understand our sector, with the direct having been a sourcer himself! They ask the right questions, and provide guidance and policies to suit property sourcing at a competitive rate. 

On average, policies are being quoted around the £230-£250 mark each year. 

Want an Insurance Quote or Find Out What's Involved?

NAPSA has created a page for non-members to get an understand of the types of costs involved and questions Insurance-Desk ask any property sourcing business.

You can review the information here or go ahead and request a quote. 

Find Out More: https://napsa.org.uk/insurance-desk/