Research conducted by Simple Landlords Insurance has revealed the top reasons why buy-to-let landlords make insurance claims.
Analysis of 100,000 buy to let insurance policies indicates storm damage, burst pipes and break-in damages are the biggest reasons why claims are made by investors.
Damages
The investigation found that storm damage is the most common claim, costing an average of £1,500 to repair. Damage to ceilings, walls and carpets caused by cracked pipes came next, with an average repair bill of £4,500. The third biggest reason for claiming was damage caused by burglars, amounting to average bills of £2,300.
Of the top-ten most common reasons, the most expensive was repairs to cover the costs of electrical fire damage, which averaged £25,000.
Simple Landlords spokesman Andrew Watson 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.’[1]
Top insurance claim reasons revealed
Location, location, location
In addition, the report also shows how premiums vary substantially according to location, property type and tenant age. What’s more, agents and landlords are warned about damages that are not covered by policies, with the most common reason being landlords not buying accidental damage cover.
Landlords should always check their landlord insurance policy to make sure they have the right cover for their needs.
‘Buying insurance is often one of the last things buy-to-let investors consider,’ Watson noted. ‘Having a clear understanding of the key factors that can influence a premium will save landlords money in the long run,’ he added.[2]
[1] https://www.lettingagenttoday.co.uk/breaking-news/2016/4/storm-damage-broken-pipes-and-break-ins-top-lettings-insurance-claims
[2] http://www.propertywire.com/news/europe/storm-damage-and-burst-pipes-cause-the-most-damage-in-uk-buy-to-let-properties-2016041511799.html