Beware of making small claims on your landlord insurance

Landlords are being warned not to make claims for small amounts on their let property insurance – as any loss of a no claims discount (NCD) could see the cost of their annual premiums increase by 20%.

Richard Burgess, Director at let property insurance specialists Cover4LetProperty, explains: “Certainly with our policies - and with some of those offered by other providers too – a 20% NCD is automatically deducted from the cost of the annual premiums, so that landlords get cost-effective, affordable cover.

“Of course, should a successful claim be made on a policy, then at renewal, the new cost will not include the no claims discount – meaning the premiums will appear to increase quite dramatically”.

Mr. Burgess gives an example:

  • a landlord makes a small claim for £200;
  • the claim is approved, and the landlord receives £100 from the insurer (as the policy has a £100 excess amount);
  • at renewal time, the landlord will typically find that the cost of their cover has increased by around 20% - maybe more. With the average annual premium amount being £208*, this means that they will pay £249.60;
  • after that, they will need to rebuild their no claims discount back up over the years.

He says: “In the long run, landlords could end up paying out a lot more for the cost of their cover than if they had not claimed for a small amount. We suggest that in the event of a claim, in the first instance you contact your broker for advice, as that is what brokers are there for”.

Ends

*Cover4LetProperty statistics 2013

Contact:

Richard Burgess, MCIM, ACIEH, Director at Cover4LetProperty, telephone: 0845 863 9558 or email: richardb@alanblunden.co.uk

About Cover4LetProperty:

With roots going back to 1946, our clients can benefit from 68 years’ of experience in the landlord insurance marketplace. We are award-winning independent intermediaries and act on behalf of our clients in arranging their buy to let and unoccupied property insurances. Our service includes advising clients on their insurance needs, arranging insurance cover with insurers to meet those requirements and help with any ongoing changes that have to be made to their landlords insurance policies.

In 2011 we were proud to beat off some stiff competition for the award for Best Landlord Insurer in the prestigious The Money Awards.

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About Us

About Cover4LetProperty With roots going back to 1946, our clients can benefit from many years’ of experience in the landlord insurance marketplace. We are award-winning independent intermediaries and act on behalf of our clients in arranging their buy to let and unoccupied property insurances. Our service includes advising clients on their insurance needs, arranging insurance cover with insurers to meet those requirements and help with any ongoing changes that have to be made to their landlords insurance policies.

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Quick facts

• a landlord makes a small claim for £200; • the claim is approved, and the landlord receives £100 from the insurer (as the policy has a £100 excess amount); • at renewal time, the landlord will typically find that the cost of their cover has increased by around 20% - maybe more. With the average annual premium amount being £208*, this means that they will pay £249.60; • after that, they will need to rebuild their no claims discount back up over the years.
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Quotes

With our policies, a 20% NCD is automatically deducted from the cost of the annual premiums, providing cost-effective, affordable cover
Richard Burgess, Director, Cover4LetProperty
If a successful claim is made, then at renewal, the new cost will not include the no claims discount – meaning the premiums will appear to increase quite dramatically
Richard Burgess, Director, Cover4LetProperty