Landlord News

Malicious Damage by Tenants

Em Morley - August 28, 2012

A new report is warning landlords to be vigilant against malicious damage caused by their tenants.

Malicious damage to property is within the top three most common insurance claims logged by landlords, the majority of which is caused directly by tenants.

No cover

The report, conducted by Total Landlords Insurance, states that claims made for malicious damage in the last two years amount to £700,000. Surprisingly, not all landlords are covered against this type of damage, as it is not automatically contained in their cover.

Eddie Hooker, the CEO of Total Landlord Insurance, said that malicious damage is “not always covered on standard landlord polices,” and policies inclusive of cover only “protect against malicious damage caused by a third party.”[1]

Somewhat alarmingly, the report states that malicious damage claims are much more than that for accidental damage. Claims for accidental damage amount to around £50,000.

Malicious intent 

Damages to property classed as malicious can come as a result of many different forms, such as:

  • Fire
  • Broken windows
  • Deliberate theft
  • Trashed property

Students

Protecting against malicious damage is particularly important for student housing. This is not only to protect against the unpredictability of students, but as Hooker explains: “Because their leases are often shorter term and their properties tend to remain empty over holiday periods, putting them at greater risk.”[1]

[1] http://www.landlordtoday.co.uk/news_features/Malicious-damage-by-tenants-a-common-problem-says-insurer-