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Top tips to avoid common buy-to-let insurance claims

Damage caused by storms, burst pipes and from break-ins were listed in a report earlier this year as the primary reasons that buy-to-let landlords make insurance claims, but there are simple measures that property investors can take to help make life as a landlord easier.

The analysis of data from 100,000 policies by Simple Landlords Insurance found that storm damage was the most common claim, costing an average of £1,500 to repair, followed by damage to ceilings, walls and carpets caused by burst pipe with an average £4,500 repair bill. The third most common reason for making a claim was property damage caused by burglars with an average claim of £2,300.

But to help reduce the likelihood of having to make a buy-to-let insurance claim, Simple Landlords Insurance compiled the following five top tips for buy-to-let landlords:

 1.    Conduct regular inspections to make sure your tenants are who they claim to be

2.     Make friends with the neighbours so that they will tell you if something goes awry at your property

3.     Consider taking out extra insurance to reduce your excess payments and to cover accidental damage

4.     Use the Building Cost Information Service (BCIS) calculator to find an accurate rebuild cost

5.     Keep your roof well maintained and gutters clear to avoid weather damage

Andrew Weston from Simple Landlords Insurance said: “Saving money will become even more important for landlords in coming years as tax increases announced by the chancellor are phased in, which for many investors could make the difference between profit and loss.”

Buying insurance is often one of the last things buy-to-let investors consider, but it is important to be aware that insurance premiums can vary significantly according to property type, location, and tenant type.

Weston added: “Having a clear understanding of the key factors that can influence your premium will save landlords money in the long run.”

Top 10 reasons that landlords make an insurance claim

 

The damage

Average repair cost

1

Storm damage

£1,500

2

Burst pipe

£4,500

3

Damage from break ins

£2,300

4

Vandalism

£1,900

5

Accidental damage to the building

£2,200

6

Excessive rain

£2,100

7

Collapsed drains

£2,600

8

Vehicle crashing into the property

£4,600

9

Electrical fire

£25,000

10

Leak from the Property

£2,000

Average

£4,600

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