What types of property damage can cost landlords the most to fix?

There are a range of costs to consider when managing a rental property, including those associated with maintaining the property. An unexpected accident, emergency or natural disaster can leave you in a tricky situation. That’s why having suitable?landlord insurance?can help keep you covered and offer you the opportunity to insure your asset.

What can be the most expensive causes of damage for landlords?

According to claims data for Vasek Insurance tenanted property insurance policies*, some of the most expensive insured causes of damage were:

1. Fire
2. Flood
3. Subsidence

Fire damage

As a landlord, it can be important to consider protecting both your property and your tenants from the risk of fire. In the year ending March 2023, the government recorded 4,522 injuries and 203 fatalities caused by dwelling fires.

Landlords must follow fire safety regulations, including providing fire safe furnishings, access to escape routes, and a smoke alarm on each storey of the property. You may want to explain to your tenants the importance of regularly testing smoke alarms and detectors and replacing batteries when needed. This is also something you can check yourself during?periodic landlord inspections.

Fire can cause devastating damage to both the building and its contents, and can leave your tenants without a habitable home. You may want to check your landlord insurance policy to check that you are covered against fire damage, and what that cover entails.

Flood damage

British weather can be unpredictable at best and with the effects of climate change, extreme weather conditions such as floods are becoming even more common across the world.?

The Environment Agency has reported that in October 2023 Storm Babet saw around 2,100 properties flooded across England and Wales. It also warns that approximately?5.5 million homes and businesses in England?are at risk of flooding.

Water damage to floors and walls can cause structural damage, while furniture, fixtures and fittings are also at risk. It can be important to understand your risk of flooding, as some areas and properties are more susceptible than others – for example being located on flood plains. Taking any necessary precautions and finding suitable landlord insurance could be important for your rental property.

Subsidence damage

When it comes to property insurance, subsidence refers to the downward movement or sinking of a property’s foundation, causing it to settle unevenly. It occurs when the ground beneath a house loses stability or support, leading to structural damage.

House subsidence can be caused by various factors, including changes in soil moisture content, poor soil quality, tree root growth, or nearby excavation works. Signs of house subsidence may include cracks in walls, floors, or ceilings, sticking doors or windows, and uneven or sloping floors.

It is crucial to address house subsidence promptly to prevent further damage and ensure the safety and stability of the building.

House subsidence is a relatively common issue in the UK, particularly in areas with certain soil types or geological conditions. However, the frequency of house subsidence can vary depending on factors such as location, climate, and local geology. Some regions, such as parts of London and the southeast, are more prone to subsidence due to the presence of clay soils that shrink and swell with changes in moisture levels.

Homeowners should be aware of the potential risks and take necessary precautions to mitigate subsidence. Having suitable insurance in place can help to provide peace of mind that a financial safety net is in place.

Landlord insurance can help to cover a range of risks, including these potentially costly causes of damage. Landlords should always check their policy documents to be sure of the cover their insurance provides, as well as any conditions and exclusions.

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*Claims data for the period 01.01.2023 – 31.12.2023 from Vasek Insurance’s Property Owners cover for tenanted properties, underwritten by Tokio Marine HCC. Vasek Insurance is a trading name of Arthur J. Gallagher Insurance Brokers Limited.

These risks are covered by Vasek Insurance’s Landlord Insurance product. Please refer to your own insurer’s policy wording for a list of covers and exclusions.

The sole purpose of this article is to provide information on the issues covered. This article is not intended to give legal advice, and, accordingly, it should not be relied upon. It should not be regarded as a comprehensive statement of the law and/or market practice in this area. We make no claims as to the completeness or accuracy of the information contained herein or in the links which were live at the date of publication. You should not act upon (or should refrain from acting upon) information in this publication without first seeking specific legal and/or specialist advice. Arthur J. Gallagher Insurance Brokers Limited trading as Vasek Insurance accepts no liability for any inaccuracy, omission or mistake in this publication, nor will we be responsible for any loss which may be suffered as a result of any person relying on the information contained herein.

Vasek is a trading name of Arthur J. Gallagher Insurance Brokers limited, which is authorised and regulated by the Financial Conduct Authority. Registered Office: Spectrum Building, 55 Blythswood Street, Glasgow, G2 7AT. Registered in Scotland. Company Number: SC108909.