This is why landlord insurance is advisable for landlords. There is no legal requirement for landlords to hold insurance, although most buy to let mortgage providers will not offer to fund to landlords who don't have this insurance.
Knowing the most common landlord insurance claims is useful. Many landlords take comfort knowing other landlords face problems and challenges, assuring them they aren't the only professionals overcoming obstacles. However, there is also a lot to be said for knowing the most common landlord insurance claims, because it helps you be proactive in preventing these issues from arising.
When you know the most common problems a landlord's faces, you can reduce the risk of these problems arising, saving you considerable time and inconvenience. If problems occur, you'll be grateful you have insurance in place, but ideally, you don't want to claim your insurance unless necessary.
Broken or burst water pipes
The most common form of landlord insurance relates to burst or broken water pipes. A 2019 survey found broken or burst water pipes are responsible for one-third of all claims in this field. With the average cost for this claim coming in at an average of £2,500; it is a costly problem to deal with.
With flooding causing significant issues to carpets, furniture, walls and ceilings; tenants often have to be rehoused in the aftermath of a broken or burst water pipe. This is a significant inconvenience for the tenant and landlord, so you must take steps to minimise the likelihood of this problem arising. Ways you can reduce the possibility of broken or burst water pipes in a rental property include:
- Making sure you can easily access a concealed pipe
- Making sure tenants know how to turn off a stopcock when an emergency arises
- Encouraging tenants to retain a low heat during cold periods
If you follow these steps, you will reduce the likelihood of pipes bursting, even in the coldest months of the year.
Weather-related claims
The next most common reason for landlord insurance claims relates to damage caused by weather. Storms, high winds and rain can cause significant problems in a rental property. If a tenant is unhappy at home, they may move out, or they may need to be rehoused if the issues are significant.
The average cost of a weather-related claim is more than £1,100. Therefore, landlords need to be proactive in preventing these claims, and the following steps will help:
- Clearing your drains and gutters regularly
- Making sure the roof of the property is in excellent condition
- Check your doors and window frames, making sure everything is in good order
Other common landlord insurance claims include:
- Break-in and theft damage
- Accidental damage caused by tenants
- Malicious damage caused by tenants
If you need guidance in preserving your rental property or any aspect of the letting industry, contact Addison Giles, and we'll be more than happy to assist you.
