Richard Burgess, Director at let property insurance specialists Cover4LetProperty (http://www.cover4letproperty.co.uk/)
“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, you contact your broker for advice, as that is what we are here for”.
*Cover4LetProperty statistics 2013