Your landlord insurance is there for a reason, but it is easy to make small claims on your cover and therefore lose your no claims discount.
If you do this, you could push up your future premiums. An insurance expert, Richard Burgess, reports that one claim can force up your annual cost by 20%.
He says that a 20% no claims discount is automatically deducted from annual premiums, giving landlords affordable cover. However, if you make a successful claim on your policy, the new cost will not include this discount, causing your premiums to increase significantly.
Not only will your costs go up, but you will also have to re-establish your no claims discount over time.
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 for advice.”
So if you find an issue with your rental property or tenants, it may be worth resolving the problem without involving your insurance company, if you are able to.
Otherwise, ensure your insurance provider covers all issues, such as rent guarantee and unauthorised alteration.