An estimated 400,000 landlords in the UK (29%) have had their property damaged by tenants in the last 12 months, research from the National Landlords Association has revealed.
The figures also show that on average almost one in 10 (8%) – or approximately 120,000 – landlords in the UK have had to make an insurance claim of some kind in the last 12 months, and spending on average 5% of their rental income on landlord insurance premiums.
However, half of landlords (49%) say they haven’t spent any money on insurance premiums in the last year, with 46% spending up to 10% and 4% of landlords have spent more than 10% on landlord premiums over the past year.
The news comes after the Chancellor announced that insurance premium tax will rise this November from 6% to 9.5%. The new rate, which includes landlord insurance premiums, is expected to generate up to £1.75bn a year for the Treasury.
The NLA’s chairman, Carolyn Uphill, is keen to remind landlords to protect their rental investments in order to cover all eventualities and to insure against the unexpected.
Uphill, said: “Property damage can be a costly issue for landlords especially if the level of damage exceeds the value of the tenancy deposit.
“We hear time and time again from landlords who have suffered because they failed to properly vet their tenants before granting a tenancy, and it’s alarming just how many landlords find out the hard way that their basic home insurance policy doesn’t provide the cover they need.
“It’s vital to have the right policies and protections in place and landlords should ensure they carry out crucial tenant checks prior to letting their properties. The NLA offers the most comprehensive range of support, advice and services to help landlords and property owners of all types and sizes to run profitable, sustainable and successful lettings businesses.
“Landlords who are unsure about what cover they need should get in touch about our bespoke property insurance offering, which includes some of the widest cover for landlords and buy to let owners in the market.”