Landlords across the UK are being urged to take proactive steps to safeguard their insurance policies, as common tenant behaviours could inadvertently render them void. With increasing financial pressures from rising mortgage rates, tax changes, and government rental reforms, ensuring adequate insurance coverage is more crucial than ever.
Common oversights that could cost landlords dearly
Insurance experts at Quotezone have identified five key factors that could leave landlords without valid insurance, potentially exposing them to significant financial losses. These include unauthorised modifications by tenants, long periods of unoccupancy, infestations, subletting without consent, and landlords failing to act on reported issues.
Greg Wilson, CEO and insurance specialist at Quotezone, explained: “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.”
Wilson also warned: “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.”
Tenants could unknowingly put insurance at risk
Landlord insurance policies are in place to protect property investments, but even the best policies can be voided if terms and conditions are not met. One of the biggest risks comes from tenants making unauthorised changes to the property. Modifications such as installing built-in furniture, removing walls, or making electrical adjustments could impact the structural integrity or fire safety measures, potentially leading to an invalid insurance claim.
Another common issue is long periods of unoccupancy. Many insurers specify a maximum number of consecutive days a property can be left vacant before coverage is affected, often ranging from 30 to 60 days. If a tenant leaves for an extended holiday or stays elsewhere without informing the landlord, the property could be at greater risk of break-ins or maintenance issues going unnoticed.
Quotezone’s research also revealed that infestations, such as rodents or insects, are a major factor that could lead to an insurance policy being voided. Damage caused by infestations is typically excluded from standard landlord insurance, as it is considered a maintenance issue rather than an insured event. Regular inspections and requiring tenants to report pest problems promptly can help landlords avoid these costly pitfalls.
Landlord responsibility is key to keeping policies intact
While tenants play a role in protecting rental properties, landlords also need to be vigilant. A Quotezone survey found that 45% of tenants had experienced issues such as mould or asbestos in a rental property, yet 16% of those cases were left unaddressed by the landlord. Ignoring tenant complaints could not only lead to legal disputes but may also invalidate insurance claims, leaving landlords to cover repair costs themselves.
Wilson stressed: “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.”
Another significant risk is ‘rent to rent’ arrangements, where a tenant rents a property and then sublets it to others. Many standard landlord insurance policies do not cover this type of arrangement unless explicitly stated in the agreement. Landlords must ensure they have a direct relationship with their tenants and carefully check their insurance policy terms to avoid any coverage issues.
Ultimately, staying informed and proactive is the best way for landlords to protect their investment. Reviewing lease agreements, maintaining open communication with tenants, and conducting regular property inspections can all help ensure that insurance policies remain valid, preventing costly and avoidable financial losses.
If you require landlord insurance, visit our Residential Landlords Insurance.
