If you’re a landlord, having the right landlord insurance is essential to protect your property and your income. But even with a valid policy, many landlords find themselves in a frustrating situation, making a claim only to have it rejected.
Imagine this: you’ve diligently paid your landlord insurance premiums for years, never making a claim. Then, one day, there’s an unexpected incident at your buy-to-let property. After dealing with the immediate issue, you contact your insurer to file a claim, only to be told it’s been denied. Despite your best efforts to appeal, the insurer won’t budge.
It’s an unfortunately common situation, and one that can often be avoided. While not every dispute can be prevented, many claims are turned down due to oversights or misunderstandings that are entirely avoidable.
Here are some of the most common pitfalls landlords encounter and how to stay on the right side of your insurer.
1. Providing Incorrect or Incomplete Information
Mistakes on your application – even unintentional ones – can come back to haunt you. When applying for or renewing landlord insurance, accuracy is vital. Misrepresenting details, such as the type of tenants you let to or failing to update the insurer if tenants’ circumstances change, could invalidate your cover.
For instance, if a tenant switches from full-time employment to full-time study, that could impact your risk profile. Encourage tenants to keep you informed and update your insurer whenever a relevant change occurs.
2. Not Declaring Renovations or Property Modifications
Whether you’re making improvements yourself or tenants have made unauthorised changes, your insurer needs to know. Structural work and major renovations can affect the terms of your landlord insurance policy.
Landlords are sometimes caught out when tenants alter the property without permission—something they’re not allowed to do under most tenancy agreements. Routine property inspections are your best defence against this kind of risk.
3. Allowing Long Void Periods Without Informing Your Insurer
Insurance providers don’t like empty properties. Many landlord insurance policies become invalid if the property is unoccupied for longer than a set period – often 45 to 60 days.
If your property is between tenancies or undergoing refurbishment, let your insurer know. You may need to arrange unoccupied property cover or additional protection during the void period to maintain your policy’s validity.
4. Subletting Without Permission
Subletting poses a serious risk to your landlord insurance. If a tenant sublets the property without your knowledge or permission, it could result in a breach of policy, leaving you financially exposed if damage or loss occurs.
To avoid this, carry out regular inspections and make sure tenants understand the terms of their agreement. Most insurance providers require that only the named tenants live at the property.
5. Failing to Understand Your Policy
It might seem obvious, but many landlords don’t read their policy in full. Understanding what your landlord insurance does – and doesn’t – cover is key to avoiding disputes.
For added peace of mind, work with a professional letting agent. They can support you with tenant checks, property inspections, and ongoing maintenance, reducing your risk and helping you stay compliant with your insurer’s expectations.
Protect Your Investment with Confidence
Landlord insurance is a vital safety net, but it only works if your policy reflects the true nature of your property and how it’s used. Stay informed, communicate with your insurer, and carry out regular checks to ensure your cover remains valid.
If you’d like advice on safeguarding your investment, working with tenants, or arranging a professional property management service, contact us today.
And if you found this article useful, please consider sharing it with a fellow landlord.
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