Beware of making small claims on your landlord insurance

 
SOUTHEND, U.K. - Aug. 8, 2014 - PRLog -- Landlords are being warned not to make claims for small amounts on their let property insurance – as any loss of a no claims discount (NCD) could see the cost of their annual premiums increase by 20%.

Richard Burgess, Director at let property insurance specialists Cover4LetProperty (http://www.cover4letproperty.co.uk/), explains: “Certainly with our policies - and with some of those offered by other providers too – a 20% NCD is automatically deducted from the cost of the annual premiums, so that landlords get cost-effective, affordable cover.

“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”.

Ends

*Cover4LetProperty statistics 2013

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Cover4LetProperty
***@speediepr.co.uk
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Source:Cover4LetProperty
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Tags:Insurance, Property, Landlord, Real Estate, No Claims Bonus
Industry:Insurance, Real Estate
Location:Southend - Essex - United Kingdom
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