Landlords warned not to make small insurance claims

Let property insurance specialists Cover4LetProperty are warning landlords not to make insurance claims for small amounts – as the loss of any no claims discount (NCD) could see the cost of their cover rise by around 20%.

Richard Burgess, Director at Cover4LetProperty, explains: “With our policies - and typically some of those offered by other providers too – a 20% NCD is automatically deducted from the cost of the annual premiums.

“In the event a successful claim is made on a policy, however, then at renewal, the new cost will not include the no claims discount – meaning the premiums will appear to increase quite dramatically”.

For 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 compulsory excess amount);
  • at renewal time, the cost of the cover may typically have increased by around 20% (due to the loss of the NCD). With the average annual premium amount being £208*, this means that the new annual landlord insurance cost may typically be £249.60;
  • after that, the landlord will need to rebuild their no claims discount back up over the years.

Mr. Burgess 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, as they will be able to advise on the next steps”.

Ends 

*Cover4LetProperty statistics 2016

Contact:

Richard Burgess, MCIM, ACIEH, Cert CII 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 70 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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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

With our policies - and typically some of those offered by other providers too – a 20% NCD is automatically deducted from the cost of the annual premiums
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If you make a claim, you will lose the no claims discount amount of 20%
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Making a claim for a small amount could cost you more in the long run
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For 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 compulsory excess amount); • at renewal time, the cost of the cover may typically have increased by around 20% (due to the loss of the NCD). With the average annual premium amount being £208*, this means that the new annual landlord insurance cost may typically be £249.60; • after that, the landlord will need to rebuild their no claims discount back up over the years.
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Quotes

We are warning landlords not to make insurance claims for small amounts – as the loss of NCD could see the cost of their cover rise by around 20%
Richard Burgess, Director at Cover4LetProperty
With our policies - and typically some of those offered by other providers too – a 20% NCD is automatically deducted from the cost of the annual premiums
Richard Burgess, Director at Cover4LetProperty
In the event a successful claim is made on a policy, however, 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 at Cover4LetProperty
If you need to make a landlord insurance claim, contact your broker first for advice
Richard Burgess, Director at Cover4LetProperty