What property damage from pets and kids is covered by landlord insurance?

If the Renters’ Rights Bill (RRB) passes in its current form, landlords and agents will no longer be able to refuse a tenant with a pet - unless they have a good reason to object, such as the property being too small for the type of pet proposed. They will also be unable to refuse to let to tenants with children.

As a result, landlords who currently don’t accept pets or children may be concerned about the potential extra damage to their property that could be incurred in the future. So what would be covered by a landlord insurance policy?

Children and insurance

A landlord insurance policy will cover accidental damage by tenants and their family, which includes children. It should also include cover for malicious damage.

This means if a child does something like draw on the walls and the tenant either can’t or won’t pay for it to be repainted, your own insurance should cover the cost.

Pets and insurance

A standard landlord insurance policy is highly unlikely to cover any loss or damage caused by pets. The policy recommended by our partners, Uinsure, specifically states under ‘What is not insured’: “Loss or damage caused by chewing, scratching, tearing or fouling by domestic pets.”

The reason for this is that it’s hard for insurers to know the specific level of risk a pet presents. Animals can be very unpredictable and it’s almost impossible for an insurer to be able to assess how well they’re trained.

Damage versus wear and tear

It is important to remember that damage is different from wear and tear, which is gradual deterioration that’s considered an acceptable consequence of a person or pet living in the property. For example:

• Minor scratches on flooring that are caused by a pet moving around
• Hand marks on walls from toddlers steadying themselves

Wear and tear is not covered by insurance, and it’s not something you can charge your tenant for. So it’s well worth looking at what steps you can take now to help protect your property against the unavoidable additional wear and tear from pets and children and also reduce the likelihood of damage occurring, even if it just means you have a budgeted for regular upgrades.

Steps you can take to protect your property

• Take a deposit. Remember that if a child or pet belonging to your tenant causes damage, the tenant is liable for the cost of making repairs. So the first way to protect yourself financially is to ensure you take a security deposit at the start of the tenancy. This can be the equivalent of up to five weeks’ rent (six weeks if the annual rent is more than £50,000).
  
  
• Have an inventory. Ensure you have a thorough inventory taken before the tenant moves in, detailing the exact condition of the property and including photographs. Then, if damage does occur, you have evidence to support your claim.
  
  
• Add clauses to the tenancy agreement. Have a discussion with a lettings legal specialist about including additional clauses in the tenancy agreement, such as specifically requiring the tenant to:
  • Ensure the property is cleaned regularly and a full ‘deep clean’ is carried out at the end of the tenancy
  • Carry out pest treatments
  • Report any damage immediately

However, you can’t just add any clauses to a tenancy agreement, you need to check they are considered ‘fair’, so seek legal advice if you are planning to add your own clauses.

• Make property upgrades. Do what you can to minimise the impact of pets and young children on the interior, for example:
  • If you currently have carpets, consider replacing them at the next opportunity with hard flooring, such as wood, laminate or tiles, which will be harder wearing and easier to keep clean. If it’s a leasehold property, check you can have this type of flooring.
  • Decorate the walls with washable paint, which is much more durable than regular emulsion and resistant to stains, spills and other marks.
  • Replace long curtains with window-length blinds, which will be much easier to keep clean, but do make sure they meet the current guidelines.

If you would like to discuss any aspect of landlord insurance, we are here to help. Get in touch with our experts today, by calling 01903 890044, emailing info@bodeinsurancesolutions.co.uk, or by getting a quote online.

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

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