9 common mistakes that can invalidate insurance cover

When you apply for a landlord insurance policy, you need to provide information not only about the property and its contents, but also about your tenants and tenancy. Supplying inaccurate information, even unintentionally, could reduce the amount your insurer will pay out, or could invalidate a claim entirely.

Needless to say, there’s no point paying an insurance premium only to find out you’re not covered because of a mistake you’ve made. So take some time to look through your policy carefully and make sure:

1. All your statements and information are correct.
2. You understand the conditions and obligations you need to fulfil.
3. You don’t take any action or inaction that would give your insurer a reason to refuse a claim.

Here are nine common reasons for an insurance claim being refused:

1. Providing wrong information about the building

On your policy application, the information you provide about the property – including its construction, whether it has a flat roof, details about the window and door locks – contributes to the insurer’s calculation of the risk profile and therefore the amount of your premium. Make sure all this information is correct and if you’re not sure about the answer to any question, phone your insurer to clarify it.

2. Providing wrong information about your tenants

Your insurer needs to know how many tenants are occupying the property and also what kind of tenants they are. For example, if you let to students, insurers can see that as an increased risk because there are likely to be multiple visitors to the property and parties that raise the chance of damage. So, you must be clear when defining your tenants – e.g. working adults, families with children, adults in receipt of benefits – and remind your tenants they must let you know if their circumstances change.

3. Lack of proper maintenance

Even if your tenants are responsible in the tenancy agreement for maintaining the property and garden, it’s ultimately your responsibility to keep the property free from potential hazards and to maintain it in a safe and habitable condition. Tenants might not tell you when repairs are needed, and if things like leaks and blocked drains then lead to sufficient damage that you need to make a claim, you may not be covered.

To make sure you keep up to date with maintenance, it’s advisable to work with a qualified agent who carries out a property inspection every six months and checks the exterior after any storms, or do this yourself. Around the end of autumn, it’s worth considering a contractor that clears the guttering and drains, makes sure fence panelling is secure, and cuts back any trees and shrubs as necessary.

4. Infestations

Damage from infestations - such as mice, rats, bed bugs and termites – are typically excluded from standard insurance policies but there are extras and add ons that can be taken to cover this. As a landlord, you are responsible for maintaining the property in a good state of repair and if an infestation is allowed to develop, it suggests neglect. Remind your tenants about safe and hygienic waste disposal, and that if they see any signs of a pest infestation, it needs to be reported and removed as soon as possible.

5. Damage through DIY

Very few insurers will cover you for any damage you cause by doing work yourself. It’s always advisable to use external contractors who understand buy-to-let rules and regulations and have their own liability insurance against damaging your property.

6. Not informing your insurer if the property is empty for more than 30 days

Most insurance policies will not cover you if the property is vacant for more than 30 days, although sometimes this is extended to 60 days for rental properties. So, if you are having trouble letting, or you don’t have tenants for a period because you’re carrying out work, you must inform your insurer. Usually, you can easily arrange ‘unoccupied property insurance’.

The actions of your tenants can also invalidate your policy, which is why it is so important to make sure they understand their responsibilities and obligations when their tenancy begins.

7. Failing to secure the property.

 If tenants leave doors unlocked and windows open, that may invalidate the policy or lead to a complication if claiming e.g. any claim for burglary or other damage caused by unauthorised entry is likely to be rejected.

8. Leaving the property empty without telling you. 

 If your tenants are going to be away for more than a week, it’s important for them to let you know so you can make security checks and ensure there’s no damage going unattended.

9. Illegally subletting. 

There are usually clauses about sub-letting in tenancy agreements that clearly state tenants cannot sub-let all or any part of the property. During periodical inspections, make sure you carefully check for any signs that someone other than the tenants named on the tenancy agreement might be living there.

If you are a current landlord with any of the agencies within LRG, an insurance quote is ready and waiting for you in your online landlord account. No fuss or forms to fill out!

Details considered true at the time of publication.

Bode Insurance Solutions Limited is registered in England (Company no 03101637) Registered Address: Building 1, Meadows Business Park, Blackwater, Camberley GU17 9AB.
Bode Insurance Solutions Limited is authorised and regulated by the Financial Conduct Authority (FCA) under firm reference 313541.

You may check this on the Financial Services Register by visiting the FCA’s website https://register.fca.org.uk or by contacting the FCA on 0800 111 6768.