Most common causes of landlord insurance claims revealed

Fri 06 May 2016

Storm damage has been named as the most common reason for landlords having to make insurance claims.

New research identified stormy weather as both a frequent and costly issue, with the average storm-related claim requiring £1,500 to repair.

It was followed in the list of the most common landlord insurance claims by damage to ceilings, walls and carpets, with this problem said to generate a typical repair bill of £4,500. The third most common factor was burglary, which costs an average of £2,300 to put right.

The top 10 reasons landlords make insurance claims:

 The damageAve repair costNumber of days
to conclude claim
1 Storm damage £1,500 34
2 Burst Pipe £4,500 28
3 Damage from break ins £2,300 22
4 Vandalism £1,900 12
5 Accidental damage to the building £2,200 18
6 Excessive rain £2,100 18
7 Collapsed drains £2,600 24
8 Vehicle crashing into property £4,600 24
9 Electrical fire £25,000 68
10 Leak from property above £2,000  
Average £4,660  

Emma Wells, lettings director at Leaders, says: “Saving money is incredibly important to landlords who are intent on achieving the best possible yield.

“As such, it is crucial they take no risks when it comes to landlord insurance, as a failure to secure complete protection could leave them vulnerable to a range of costly repairs should disaster strike their property.

“Some experienced landlords will have seen just how quickly an accident or negligent behaviour from a tenant can lead to a problem, so having adequate insurance in place is a must.

“The good news is there is a wide selection of comprehensive landlord insurance policies on the market that provide complete protection and deliver ultimate peace of mind.”

A recent study* revealed the most expensive claim to make the top ten was electrical fires, which create an average repair bill of £25,000.

Working with a professional letting agents can also reduce the risk faced by landlords, as they will be in a position to conduct regular inspections of a tenanted property and calculate rents to ensure the cost of premiums is covered.

For more information or advice on creating a bespoke landlord insurance policy to suit your precise needs, please contact our specialist insurance partner Hepburns.







*Source: Simple Landlord Insurance