If you're a landlord, insurance is an essential tool in your arsenal. But perhaps surprisingly, more than one third of landlords don't have the right insurance for their properties.
While building and contents insurance are a must-have for any property that you live in, they might not cover properties that you're renting to a private tenant.
We've taken a look at the four most common insurance claims for landlords*, and outlined some steps you can take to minimise your risk.
Water damage
It's amazing how much damage a bit of water can do, from causing damp to destroying furniture. Burst and leaky pipes are the biggest culprits for water damage, which is why it's important to inspect your property regularly – at least once a quarter. Make sure the pipes are in good working order, and that your tenants know where the property's stopcock is.
Accidental damage
A bit of wear and tear is to be expected when you rent your property out – after all, who hasn't accidentally smashed a wine glass or two? Although landlord insurance doesn't cover the really small stuff, it could protect you against one-off instances of accidental damage.
By its nature, accidental damage can't really be avoided. Applying fabric protector to soft furnishings and securing large pieces of furniture to the walls are useful preventative steps.
Storm damage
Violent winds, rain, hail or snow can all hurt your property – especially the roof. Keeping the property well maintained should protect against most storms. If damage does occur, it could give you a better chance of having your claim upheld, too.
Malicious damage
Properties in high-crime areas are more likely to experience this type of damage. Fitting a good alarm system should deter people from breaking and entering, although graffiti and property damage can still happen.
Malicious damage could also be caused by tenants. Although screening usually filters nightmare tenants out before they move in, no system is completely foolproof.
If the worst does happen, residential landlord insurance provides you with some essential protection. At AXA, we pay out on 93% of our landlord insurance claims, and we've got a 24-hour hotline too, so if you need to make a claim you can get in touch at any time.
*Based on AXA landlord claims 2015
