13 per cent rise in landlord insurance claims during the pandemic…could the cost of living crisis be even worse?

Market analysis from Total Landlord Insurance reveals that the number of landlord insurance claims increased by 13 per cent during the pandemic, with malicious tenant damage among the fastest growing causes of a claim.

During the pandemic, landlords were unable to access their properties in the normal manner as the government-enforced lockdowns forbid them from entering their tenants’ homes. Despite this inability to see the state of their properties first hand, landlord insurance claims increased by 13 per cent between 2019 and 2021, from 536 annual claims up to 603.

During this time, the fastest growing reason for a landlord insurance claim was storm damage which increased by 93 per cent during the pandemic, from 70 claims in 2019 up to 135 in 2021.

Malicious damage has also been an increasingly common cause for landlord insurance claims during the pandemic, rising by 50 per cent between 2019 and 2021.

During the pandemic, the average landlord insurance claim size also increased. A rise of 29 per cent was seen between 2019 and 2021 as the average claim rose from £5,773 to £7,429.

The biggest rise in the size of a claim was seen in liability insurance claims. Liability insurance is that which protects the landlord against any harm or injury that befalls a tenant while inside the property, and during the pandemic, the average claim increased by 270 per cent from £1,306 to £4,827.

At the same time, the average claim for storm damage increased by 140 per cent, break-in claims rose by 101 per cent, and claims for underground services went up by 95 per cent.

Melissa Choules, Lead Claims Specialist at Total Landlord Insurance, commented:

“The pandemic made it almost impossible for landlords to gain access to their properties and along with the direct impact of the pandemic on tenants themselves, this suggests this may have contributed to an increase in insurance claims.

With landlords also unable to maintain their rental properties for such a prolonged period, the average size of a claim has also increased as they look to rectify multiple years of damage and wear and tear.

“It’s also interesting to see such an increase in claims resulting from malicious damage. This could suggest that, during the pandemic, tenants were feeling increasingly frustrated, trapped, and unable to move. At the same time, some tenants might have grown to feel resentment towards landlords who still expected them to pay the rent as normal despite significant reductions in income and job security.

“It was an incredibly difficult time for so many people, and with this new cost of living crisis now upon us, life for tenants isn’t going to get any easier.”