Landlords face insurance pitfalls as tenant actions could invalidate policies

Landlords are being warned that their insurance policies could become worthless due to oversights and tenant actions.

Specialists from Quotezone.co.uk have pinpointed five frequent blunders that might render landlord insurance null and void, leaving landlords exposed.

The insurance platform says that landlords are facing growing issues over profitability which means protecting their assets has never been more vital.

It says that failing to secure valid insurance could be costly should disaster strike.

One issue is for tenants to unwittingly undermine cover by not reporting significant alterations, damage or prolonged absences from the property.

Equally, landlords who ignore reported issues risk having claims dismissed.

Tenants play a key role

Quotezone’s chief executive, Greg Wilson, said: “There are steps landlords can take to help ensure they maintain their insurance policy, but many may not realise that their tenants also play a key role in keeping these policies valid.

“We urge landlords to ensure their lease agreements are as clear as possible, particularly regarding issues like damages, modifications and extended absences from the property.

“Transparency between landlord and tenant is one of the best ways to safeguard the insurance policy.”

He adds: “It’s crucial to understand the risks and know exactly what could invalidate the insurance policy.

“Keeping providers informed about any changes to the property is essential to help ensure it’s covered if something goes wrong.”

Insurers could deny the claim

A survey by Quotezone found that 45% of renters had encountered problems such as mould or asbestos, with 16% of these cases left unaddressed by their landlord.

Mr Wilson says: “If landlords need to make an insurance claim for an issue that was reported by a tenant, but they chose to ignore it, they’ll likely end up covering the cost themselves, as insurers could deny the claim.

“That’s why landlords need to act quickly, protect their property and ensure the conditions remain safe for tenants at all times.”

Landlord’s insurance cover

The firm has also outlined key traps that could jeopardise a landlord’s insurance cover.

It points to unapproved tenant modifications, like structural changes, which might compromise safety and value and violate tenancy terms.

Also, properties left empty for too long heighten risks of theft or leaks, potentially voiding claims.

Infestations, often tied to neglect, are typically excluded, making regular checks essential.

Subletting arrangements, such as ‘rent to rent’, can breach policies requiring a direct landlord-tenant link.

Finally, inaction on tenant complaints could lead to unsafe conditions and rejected claims.

The most efficient way to get a personal quote with the best price and cover possible is to call the team on 01832 770965 so we can focus on your enquiry when you are ready and sitting down with your portfolio details to hand.

Alternatively, you can use the form below to request one of our team to give you a call back.

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