How to Avoid Invalidating Your Landlord Insurance
Landlords who make any of these common mistakes could find their insurer refuses to pay out on claims.
Picture this: you’ve been loyally paying your landlord insurance premiums for years without ever making a claim.
Then there’s an unfortunate and unforeseen incident at your buy-to-let.
Once you’ve dealt with the immediate crisis, you lodge a claim with your insurer (which is quite a faff because, let’s face it, they don’t make it easy).
And guess what? Your claim is swiftly and resoundingly rejected.
Despite all your protestations, your insurer just won’t budge.
Unfortunately, this is a scenario that landlords can sometimes face.
So is there a way to avoid messy and frustrating claim disputes?
While we can’t work miracles, in our experience, there are some common reasons why an insurer might refuse to pay out.
Providing incorrect information
We’re not suggesting you would do this deliberately, but it can happen inadvertently.
Always be meticulous when filling out paperwork for your insurer.
Also, remind your tenants to inform you of any change in personal circumstances during a tenancy (for example, if they go from full-time employment to full-time study).
If something changes, make sure you let your insurer know. Failure to do so could invalidate your policy.
Modifications have been made to the property
You must inform your insurance company if you’re doing renovation work, especially if it involves structural changes.
Landlords can also get caught out if tenants make modifications that impact the safety of the property.
To be clear, tenants shouldn’t do this as it’s a breach of contract to make changes without the landlord’s permission, but it can happen (although inspections can guard against it).
Void periods
Nobody likes it when a rental sits empty, including insurers.
Be aware that your policy may become invalid if your BTL is empty for a significant period (usually between 45 days or two months, depending on the policy).
Explain your situation to your insurer if you’re in between tenancies or carrying out refurbishment work. They may insist you arrange additional coverage.
Subletting
There are lots of reasons why you don’t want subletting to take place at your property. In terms of insurance, it can void a policy, meaning that should something happen at your buy-to-let, you’ll be left to foot the bill.
Regular inspections are your best weapon against subletting.
Protect your investment
Ensure that you’ve read and understood your insurance policy, and for additional peace of mind, work with a good letting agent.
They can help you with credit and reference checks, inspections, and maintenance – all the things that will help you keep on the right side of your insurers.
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