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Landlords Advised, Don’t Make Small Claims on Insurance
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
Landlords advised don’t make small claims on insurance as an expert states that the loss of a no claims discount (NCD) could push up future premiums.
Director at let property insurance specialists Cover4LetProperty, Richard Burgess, says that one claim could force the annual cost of a landlord policy up by 20%.1
Landlords Advised, Don’t Make Small Claims on Insurance
He says: “Certainly with our policies, and with some of those offered by other providers too, a 20% NCD is automatically deducted from the cost of the annual premiums, so that landlords get cost-effective, affordable cover.
“Of course, should a successful claim be made on a policy, then at renewal, the new cost will not include the NCD, meaning the premiums will appear to increase quite dramatically.”
Burgess provides an example of a landlord who makes a claim for £200. As the policy has a £100 excess, the landlord receives £100 from the insurer if the claim is approved.
However, at renewal, the landlord will generally find that the cost of their policy has risen by about 20%, perhaps more. As the average annual premium stands at £208, the landlord will have to pay £249.60. Going forwards, they will also need to re-establish their NCD over the years
Burgess adds: “In the long run, landlords could end up paying out a lot more for the cost of their cover than if they had not claimed for a small amount. We suggest that in the event of a claim, in the first instance you contact your broker for advice, as that is what we are here for.”
