Owning rental properties can be a rewarding and profitable venture, offering great growth opportunities. While challenges and risks such as property damage, malicious damage, or unpaid rent may arise, having residential landlord insurance provides valuable protection. That said, it’s always beneficial for landlords to take proactive measures to maintain their properties and relationships, ensuring a smooth experience and minimising the need for insurance claims. The following guide provides landlords with practical advice on preventing and managing situations that could lead to insurance claims, ultimately saving time, money and reducing hassle.
1. Conduct Regular Property Inspections
One of the best ways to prevent damage to the property is by having a professional conduct regular inspection. Regular inspections can help identify potential risks that may not be immediately obvious, like hidden plumbing leaks, electrical issues and roof damage. Discovering these issues early before they escalate can help prevent significant property damage and avoid costly repairs.
Both you and the tenant should agree on inspection times, ensuring that it’s included in the tenancy agreement. This ensures you can regularly monitor the condition of your rental property, while also reminding the tenant of their responsibility to maintain the space.
2. Screen Tenants Thoroughly
Your tenants play a significant role in causing damage and in whether you’ll need to file an insurance claim. Thoroughly vetting potential tenants can save you a lot of trouble down the road. Poor or irresponsible tenants are more likely to cause malicious damage, fall behind on rent, or fail to inform you about necessary repairs.
Make sure the tenants have a strong rental history, steady employment, and good references. This will reduce the risk of issues like unpaid rent damage caused by negligence or even theft.
3. Maintain the Property Regularly
Routine maintenance is important for keeping rental properties in excellent condition and avoiding costly repairs that could result in an insurance claim. Regularly checking the plumbing, inspecting the roof, and maintaining the electrical systems can prevent damage such as burst pipes and other potential damage.
Landlords should promptly address common causes of property damage such as blocked gutters, dampness, and cracks in walls as soon as they are identified. Scheduling seasonal inspections for your rental properties, especially before winter, can help prevent weather-related issues and damage like flooding or freezing.
4. Install Security Measures
One of the most common claims for landlord insurance policies is theft or malicious damage. Installing security measures such as high-quality locks, alarm systems, and security cameras can deter potential burglars and protect your property from damage.
5. Understand Your Insurance Policy
It’s crucial for landlords to thoroughly understand their insurance policy. Many landlords make the mistake of assuming their landlord insurance will cover everything, only to discover that certain events aren’t covered when they happen to make a claim. Make sure your landlord insurance policy includes the following:
- Buildings insurance: Covers the cost to rebuild and repair property if it’s damaged by events like fires or floods.
- Loss of rent: Helps cover rent arrears if your tenant moves out unexpectedly or if the property can’t be accessed or lived in due to damages.
- Contents Insurance: Protection for the contents of the property such as appliances and furniture.
- Property Owners Liability: Protection against third-party claims, such as somebody being injured on your property.
Make sure to review your landlord’s insurance policy regularly, especially if the rebuild value of your rental property has changed.
6. Protect Against Weather Damage
Weather damage can create major disruptions to rental properties, especially during extreme weather conditions like storms, heavy rain, or snow. Take precautions and carry out regular inspections to prevent water damage. You can do this by making sure that the house, roof, pipes, guttering and drainage systems are in good condition.
7. Create a Strong Tenancy Agreement
A clear and detailed tenancy agreement is important for both landlords and tenants. The agreement should outline the tenant’s responsibilities, such as maintaining the cleanliness of the property, promptly reporting any issues, and covering certain repair costs for normal wear and tear.
Including clauses that address common issues like rent arrears, property damage, and tenant moves will protect both you and your rental property.
8. Keep the Property Safe for Tenants
Ensuring the property is safe is a legal requirement for all landlords. This includes having proper gas safety certificates, working smoke alarms, and regular inspections of electrical appliances. Keeping your rental properties compliant with safety regulations not only protects your tenants but also reduces the likelihood of claims due to negligence.
9. Avoid Short-Term Tenancies
While short-term leases may seem appealing, they often come with greater risks. Tenants on short-term leases are less likely to take care of the property, leading to property damage or malicious damage. Moreover, frequent tenant turnovers can increase the risk of loss of rent and rent arrears.
Offering long-term leases can attract more responsible tenants who are invested in maintaining the property and paying rent on time.
10. Respond to Maintenance Requests Quickly
Neglecting maintenance requests can lead to more serious issues, which may result in more costs and a higher likelihood of making an insurance claim. For example, a small leak could lead to extensive water damage if not addressed promptly, or failing to pay someone to fix a faulty electrical system could result in a fire.
Always have a reliable team of contractors on hand to perform repairs quickly and efficiently.
Summary
In conclusion, understanding how landlords can avoid making an insurance claim is essential for protecting rental property and saving you money. By following these practical tips – such as conducting regular inspections, maintaining the property, and ensuring you have the right insurance coverage, you can significantly reduce the risks of filing an insurance claim.
Even with the best tenants, things can still go wrong. That’s why Addison Bradley partners with leading insurers, to ensure you get a residential landlord policy tailored to your needs. If you would like to speak with our specialists, please contact us at 020 7355 1616 today.