Simple Landlords Insurance recently analysed data from 100,000 policies to find the most frequent insurance claims in buy-to-let properties. The data is very insightful, so we thought it would be useful to summarise the most common reasons for rental claims:
1.Water Damage/Burst Pipes
The most common reason, which accounts for a fifth of all insurance claims by landlords! The two main reason for the damage are someone left the tap running or poor plumbing from other adjacent properties. Frost damage is the main cause of burst during the winter months due to water expanding in pipes.
Average repair cost = £4,500
Average repair time = 66 days
Also quite common is storm damage, with certain features such as conservatories and dormer windows making properties particularly vulnerable to storm damage
Average repair cost = £1,500
Average repair time = 68 days
3.Theft and Break-ins
Unfortunately, these are also common causes for rental claims. The damage caused by thieves forcing their way in was the third most likely reason for a landlord claim, as burglars often smash doors, damage frames, and break windows to gain entry into the property.
Average repair cost = £2,300
Average repair time = 62 days
Fires caused by electrical damage are the most expensive to repair due to strict regulations for electrical safety. If landlord fail to adhere to these rules, then they can face fines of up to £20,000 and even face the invalidation of their insurance policy. Electrical fires generate the most expensive claims by a country mile!
Average repair cost = £25,000
Average repair time = 141 days
Also a common claim, although it is often not covered by landlord insurance. Landlords should find out if their normal policy covers this, or whether they have to take additional protection. Landlords have recently been hit by metal thefts costing over £8,000.
You can download a copy of the Risk Report prepared by Simple Landlords Insurance right here as it provides useful information for your landlords to consider when insuring their rental properties.