The way landlords manage rental properties is changing. One of the biggest changes comes with the Renters’ Rights Act, which makes it easier for tenants to keep pets in rented homes. While many landlords understand the benefits of pet-friendly properties, the new rules also introduce additional risks that need to be considered.
At Ashburnham Insurance, we know that protecting your investment is a priority. As more tenants are able to keep pets, it is worth reviewing whether your insurance provides the level of cover you need. This is where pet damage insurance can make a real difference.
What Has Changed?
For many years, landlords could simply refuse requests from tenants who wanted to keep a pet. Under the Renters’ Rights Act, that position has changed. Landlords can no longer issue a blanket ban on pets. Instead, requests must be considered fairly and can only be refused in certain circumstances.
This means more rental properties are likely to become home to dogs, cats and other pets. While most pet owners are responsible tenants, animals can sometimes cause accidental damage that results in expensive repairs. As a landlord, it is important to understand how this change could affect your property and your insurance.
The Risk of Pet Damage
Pets can quickly become part of the family, but they do not always understand the difference between their own home and a rental property.
A puppy may chew wooden skirting boards or doors. A cat could scratch carpets or furniture. Muddy paws may stain flooring, while accidents can leave lasting damage if they are not dealt with quickly. Some pets can also damage gardens, fences or internal doors through normal behaviour.
Many of these issues are accidental. Even so, the cost of putting them right can soon add up. If repairs are needed before new tenants move in, there may also be delays that affect your rental income.
Will Standard Landlord Insurance Cover It?
This is one of the biggest misconceptions among landlords. Many assume that if damage occurs inside the property, their landlord insurance will automatically pay for repairs. In reality, standard landlord insurance is designed to protect against specific risks such as fire, flood, storms and escape of water.
Damage caused by a tenant’s pet is not usually included as standard. This can leave landlords facing repair bills that they expected their insurance to cover. The best way to avoid unexpected costs is to understand exactly what your policy includes before a claim is needed.
What Is Pet Damage Insurance?
Pet damage insurance is designed to provide additional protection if a tenant’s pet causes damage to your rental property. Depending on the policy, it can help cover the cost of repairing or replacing damaged fixtures, fittings and other parts of the property that have been affected by a pet.
Rather than relying solely on the tenant’s deposit, landlords have an extra level of financial protection if repair costs are higher than expected. This can be particularly valuable if there is extensive damage or several areas of the property require attention.
Why This Cover Matters More Than Ever
As more landlords welcome tenants with pets, the likelihood of pet-related claims is naturally expected to increase. Most pets will never cause a problem. Many tenants take excellent care of both their animals and the property they rent. However, insurance is there for the unexpected.
Just as landlords insure against storms or burst pipes, it makes sense to consider protection against risks that are becoming more common as legislation changes. Reviewing your cover now can help you avoid unpleasant surprises later.
Looking Beyond the Deposit
Some landlords believe the tenancy deposit will be enough to deal with any damage. While the deposit may contribute towards repair costs, it is not always enough to cover the full amount.
If flooring needs replacing throughout a room or internal woodwork has been extensively damaged, costs can quickly exceed the value of the deposit. There may also be disputes about responsibility or the amount that should be deducted.
Having appropriate insurance provides another layer of protection when repair costs are high.
Supporting Positive Relationships With Tenants
Allowing pets can also have advantages for landlords. Pet-friendly properties often attract a wider range of prospective tenants. Many pet owners are looking for long-term accommodation and may stay in a property for longer than average.
Knowing you have suitable insurance in place can make it easier to approach these tenancies with confidence. Instead of worrying about what might happen, you can focus on providing a well-managed property while knowing you have financial protection if accidental pet damage occurs.
Review Your Insurance Before Your Next Tenancy
If you are preparing for a new tenancy or reviewing your current insurance, now is a good time to ask whether your policy reflects today’s rental market.
The introduction of the Renters’ Rights Act means landlords face different risks from those they did only a few years ago. Making sure your insurance keeps pace with these changes is an important part of protecting your property and your rental income.
Protect Your Property for the Future
The rental sector continues to evolve, and landlords need insurance that keeps pace.
At Ashburnham Insurance, we help landlords find cover that reflects the way rental properties are managed today. If your tenants have pets, or may be able to keep pets in the future, it is worth considering whether pet damage insurance should form part of your overall protection.
A simple review of your insurance today could save you from a much larger repair bill tomorrow. By making sure you have the right cover in place, you can continue letting your property with greater confidence, whatever changes the future may bring.