Storm damage, broken pipes and break-ins top lettings insurance claims

An analysis of 100,000 buy to let insurance policies reveals that storm damage, burst pipes and damage from break-ins are the top reasons why buy to let investors make insurance claims. 

The research, by Simple Landlords Insurance, shows that most common claim - for storm damage - cost an average of £1,500 to repair. Next was damage to ceilings, walls and carpets caused by burst pipe with an average £4,500 repair bill. The third most common reason for making a claim was property damage caused by burglars with an average claim of £2,300.

The most expensive claim in the top 10 is £25,000 to repair the damage caused by an electrical fire.

The findings come from Simple Landlords’ Insurance Risk Report. “Saving money will become even more important for landlords in coming years as tax increases announced by the Chancellor are phased in, which for many investors could make the difference between profit and loss” says the firm’s spokesman Andrew Watson.

The report also explains how insurance premiums can vary significantly according to property type, location, and tenant type. It also warns agents and landlords about damages not covered by insurance policies - the most common reason that a landlord did not have cover was that they hadn’t purchased accidental damage cover in their policy.

The insurer also offers tips to agents and landlords to minimise their risks. 

These include conducting regular inspections to make sure tenants are who they claim to be, making friends with the neighbours so that they will tell you if something goes awry at your property, taking out additional insurance to reduce your excess payments and to cover accidental damage, accurately calculating rebuild costs, and keeping roofs well maintained and gutters clear to avoid weather damage.