Top 5 ways to reduce insurance claims

There are two key elements to reducing insurance claims:

1. Minimise the likelihood of your property suffering damage in the first place, or someone being injured in it.
2. Do what you can to ensure the cost of repairing any damage is as low as possible. The less costly it is to make repairs, the less likely you are to have to make a claim on your landlord insurance.

Here are five steps you can take to reduce the number and level of insurance claims you need to make over the lifetime of your rental property investment.

Keep the property well maintained

Having a regular maintenance schedule and carrying out periodic inspections should help keep the property in good condition and protect against the impact of damage from things like adverse weather. And if the property remains in good condition, it also greatly reduces the likelihood of a tenant, visitor or contractor being injured and making a claim against you for compensation.

Remind tenants to report all issues as soon as possible

Even something that looks relatively minor could be causing significant damage behind the scenes. For example, a loose tile or missing sealant in the bathroom might mean water is seeping into the walls and flooring, and if it’s not dealt with quickly, you could easily end up with a much bigger problem that’s more expensive to fix and requires an insurance claim.

So, remind your tenant to let you or your managing agent know about any issues around damage and property condition as soon as possible, so that you can have repairs made quickly to reduce the extent of any damage and cost.

If you use an agent, ask if they carry out a regular property condition visit and report for you, especially if you are not local to the property.

Tip: Make sure your tenant has instructions about how to keep appliances in good working order, to reduce the likelihood of breakdowns, and ensure they know where the stop cock is in case there’s a leak. Damage from burst pipes and water leaks is one of the most common insurance claims, and if your tenant is able to quickly turn off the water supply it can help avoid that.

Have good security to reduce the chance of burglary, theft and vandalism

Make sure your let property isn’t appealing to burglars and vandals:

• Maintain doors and windows in good condition, with good seals and secure locks.
• Have motion-activated security lighting at the front and rear of the property.
• Cut back trees and shrubs around windows and doors.
• Remind tenants to always shut windows and lock doors before leaving the property.
• Ensure the garden and perimeter fences are kept in a good state of repair.
  
  

Ensure your tenant is thoroughly referenced

If a tenant causes damage to your property, especially deliberate damage, repairs could be very costly, which is likely to lead to an insurance claim. Having a thorough tenant vetting process that includes them being met in person and securing references from previous landlords should greatly reduce the chance of ending up with a tenant that causes malicious damage.

Take a security deposit

If a tenant causes damage, they are responsible for covering the cost of repairs. Taking the maximum level of security deposit - the equivalent of five weeks’ rent - should give you a reasonable financial cushion.

To help ensure you can make a successful claim to retain deposit funds at the end of the tenancy, make sure you take a detailed inventory at the start and end of it, with clear photographic evidence of the damage. 

Of course, accidents and adverse events can happen at any time and lead to damage that you would want to claim for, so the most important thing is that you are protected financially through landlord insurance.

To make sure you have appropriate cover in case something does go wrong, contact our team of experts either via our online form, or by calling 01903 890044. 

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

Bode Insurance Solutions Limited is registered in England (Company no 03101637) Registered Address: Crowthorne House, Nine Mile Ride, Wokingham, Berkshire RG40 3GZ.
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