Don’t be too quick to assume that your landlord buildings insurance will cover malicious damage by tenants! You’d be surprised to learn how few insurance companies actually include it in their policies, and many who do class it as an “add-on” or “extension” to their policy and charge the customer extra for it.
At Ashburnham Insurance Services,
Always check for the inclusion of malicious damage by tenant cover. Don’t be mistaken when you see that your policy has malicious damage cover. All landlord insurance policies should show that malicious damage by persons not lawfully allowed in your property is covered, but obviously this excludes damage caused by your tenants. You should always take out a policy that specifically says that malicious damage by tenants is included, to ensure that you have adequate cover.
In actuality, there’s always a risk that your property will become damaged by those residing in it and not by someone who is there unlawfully. This is why we believe that this is vital cover for any landlord. You shouldn’t have to pay extra for such cover.
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Simply speaking, malicious damage is any damage caused to the property with malicious intent. Deliberate damage caused to the property without malicious intent may be the installation of a shelf unit or other decorative fixtures.
When we speak to landlords making these sort of claims, it is often presumed that this cover is normal. When we tell them that most other insurers don’t have this sort of cover against malicious damage by tenants, they are shocked to find out that it is not standard with most insurers.
Your property is your most valuable asset. This is why your landlord buildings insurance is vital to the protection of your residential buy-to-let property or commercial let property. In addition to the most common types of cover against fire, floods, and storm damage, accidental and malicious damage should also be taken into account.
Neglecting accidental and malicious damage by tenant cover can be financially devastating. You can face substantial costs of repair by ignoring it. This type of cover against the loss or damage caused by persons lawfully allowed in the property is what separates landlord insurance policies from standard home insurance policies. It applies not only to your tenants but guests invited into the property by the legal tenants.
Cover is also available to oversea landlords living abroad, so long as the insured dwelling bears a UK format postcode.
There is a real concern for accidental damage and malicious damage if you are currently a non-resident landlord, as you aren’t in the country to personally ensure the good condition and maintenance of your property.
You should still arrange regular inspections of your property via a property management company, even if you yourself are not available to personally, to ensure that your tenants are not causing excessive damage overtime or mistreating your property.
You hear all these horror stories of unauthorised “growing” and illegal businesses transpiring in rented properties while the landlord is out of the country. Conducting regular property inspections could prevent many of these claims!