Malicious Damage Cover in a Landlord’s Insurance

This article is designed to inform you about Malicious Damage cover in a Landlords Insurance Policy which is something that people are always worried about when they rent their second property out, mainly because you rarely know the people that you rent it out to very well and because of this we are never sure if they may incur any attacks on the property or even damage it themselves both of which can be protected by insuring the property as a Landlords or Buy to Let Insurance.

Malicious Damage in itself is fairly straight forward and is covered by nearly all insurers that do this type of insurance and is designed to cover should anybody attack the property or do any kind of damage to it at all maliciously. For example if some children where to kick down the front wall of the property or even if someone was to smash the windows of the property then the policy would be available to use and to claim on it to either repair or replace the broken bit of the property that the vandals had maliciously damaged.

Something else that many people look for in a Landlords Insurance Policy is Malicious Damage by the Tenant cover which is something that only a few insurance companies are able to cover as many others feel that it is something that is too risky. Some of the insurance companies that will cover this peril will put a claim limit on this so that any of the claims made under this peril will only be able to claim up to a limit, usually £5,000 however there are also companies out there that will cover any damage done maliciously by the tenant up to the Building Sum Insured that you have insured the property for.

The reason that a lot of insurers won’t cover this peril is quite easy to understand and many take the view that as I said earlier the landlord will not always know the tenant very well and if there is any disagreement between the landlord and their tenants then you are never sure if they will maliciously damage the property following the disagreement to get back at the tenant, and also the landlord doesn’t always get the necessary checks performed about the tenants before they move in and therefore can be seen as a liability.

The type of tenant that you have in your property can also make a difference as to whether or not insurance companies will cover Malicious Damage by the Tenant. For example there are some insurance companies that will cover it as an insured peril if you have professional or working tenants in the property but they will not cover it if you have Students or DSS Benefit tenants in their. The reasons for this are that DSS and Students are seen as more likely to damage the property as they don’t have to worry as much about losing their place as if they were a working person that needed a place to live so that they could carry on going to work and earning the rent.

So if you are thinking of renting out a property and looking at getting Landlords Insurance then always remember to go through everything that is covered as it differs widely from insurance company to insurance company and you should always check the exact cover that you are getting on your policy.