New research from the National Landlords Association has revealed that 29% of British landlords have had damaged caused to their property by tenants in the last 12 months.
In addition, figures show that almost 1 in 10, or 8% of landlords, have had to make an insurance claim during the last year. This meant that on average, landlords spent 5% of their rental income on landlord insurance premiums.
More positively, almost half of landlords said that they hadn’t spent any money on insurance premiums during the past year. 46% said that they had spent 10% of their premiums, while just 4% said they had exceeded this figure.
The figures come as the Chancellor has announced that the insurance premium tax will increase in November from 6% to 9.5%. This is expected to raise £1.75bn for the Treasury.
Carolyn Uphill, Chairman of the NLA, wants landlords to protect their rental investment to cover all unexpected eventualities in the future.
‘Property damage can be a costly issue for landlords especially if the level of damage exceeds the value of the tenancy deposit,’ Uphill said. ‘We hear time and time again from landlords who have suffered because they failed to properly vet their tenants before granting a tenancy, and it’s alarming just how many landlords find out the hard way that their basic home insurance policy doesn’t provide the cover they need,’ she added.
400,000 landlords affected by property damage
Concluding, Uphill remarked that, ‘It’s vital to have the right policies and protections in place and landlords should ensure they carry out crucial tenant checks prior to letting their properties. The NLA offers the most comprehensive range of support, advice and services to help landlords and property owners of all types and sizes to run profitable, sustainable and successful lettings businesses. Landlords who are unsure about what cover they need should get in touch about our bespoke property insurance offering, which includes some of the widest cover for landlords and buy to let owners in the market.