Letting agents are often the first people to become aware of a change at a rental property.
A new tenant moves in, a property becomes empty, building work begins or an inspection reveals damage. Each event may appear to be an ordinary part of managing a tenancy, but it could also affect the landlord’s insurance.
The letting agent does not need to decide whether the policy remains suitable or whether a claim will be covered. However, promptly recording the change and advising the landlord to contact their broker or insurer can help prevent important information from being overlooked.
Here are the insurance early warnings letting agents should recognise.
1. The tenant or occupancy has changed
A change of tenant can alter the information on which the insurance was arranged.
The landlord’s broker or insurer may need to know whether the property is occupied by:
- A single tenant or family
- Working professionals
- Students
- Several unrelated tenants
- A company or organisation
- Tenants placed through a council or housing provider
- Short-term occupants or paying guests
- A mixture of residential and commercial occupants
Agents should avoid assuming that one description is interchangeable with another. A policy arranged for a single household may not necessarily be suitable for several unrelated occupiers or short-term guests.
The terminology used for tenancies, licensing and occupancy differs across England, Wales, Scotland and Northern Ireland. Whatever the location, the actual arrangement should be described accurately.
2. The number of occupants has increased
The original tenancy may not always reflect how the property is being occupied later.
During an inspection, an agent might notice additional beds, belongings belonging to people who are not named on the tenancy or indications that rooms are being occupied separately.
This could affect the property’s licensing or management requirements, but it may also change the insurance risk. The agent should record what has been observed and raise it with the landlord rather than making assumptions.
3. The property is becoming unoccupied
An approaching void should be treated as an insurance prompt.
Policies commonly define when a property becomes unoccupied and may introduce additional conditions after a specified period. These can include:
- Regular inspections
- Security requirements
- Removal of post
- Heating or water precautions
- Notification of the insurer
- Restrictions on certain types of cover
The relevant period and conditions vary between policies. The agent should tell the landlord when the tenant is expected to leave and if a new tenancy is delayed.
A short gap can become an extended void surprisingly quickly, particularly when repairs, refurbishment or a difficult letting market delay occupation.
4. Refurbishment or building work is planned
Redecoration between tenancies is different from major structural work.
The insurer or broker may need to know about:
- Extensions
- Loft or garage conversions
- Removal of internal walls
- Roof replacement
- Rewiring or major plumbing work
- Structural repairs
- Changes creating additional bedrooms or units
- Work that requires the property to remain empty
Ordinary landlord insurance may not automatically provide appropriate protection during substantial renovations.
The landlord should contact the broker or insurer before work begins. Waiting until contractors are on site—or until damage has occurred—may be too late.
5. The use of the property has changed
A property may gradually begin to be used in a way that differs from the original insurance description.
Examples include:
- A standard tenancy becoming a short-term or serviced let
- Rooms being let separately
- A tenant operating a business involving customers or stock
- Part of the property being used commercially
- The property being sublet
- A residential building being converted into several units
Homeworking involving a laptop may not present the same issues as a business with employees, visitors, specialist equipment or stored goods. The key is to report the actual circumstances and allow the insurer to decide whether they are significant.
6. An inspection has revealed damage
Agents frequently discover problems during routine visits. These may include:
- Water staining
- Cracked walls or ceilings
- Roof damage
- Broken locks or doors
- Electrical damage
- Damp or mould
- Damaged fixtures and fittings
- Evidence of attempted entry
- Deliberate or accidental tenant damage
Not every defect is an insurance claim. Some problems result from wear and tear, maintenance or gradual deterioration.
However, the agent should photograph the damage, record when it was discovered and notify the landlord promptly. If immediate work is necessary to protect people or prevent further loss, that should also be documented.
The landlord should contact the broker or insurer before authorising non-emergency repairs that could remove evidence or affect the assessment of a claim.
7. Repairs are not resolving the underlying problem
Repeated repairs can indicate a more significant issue.
Recurring water staining may suggest an unresolved leak. Cracks that are increasing could require investigation. Repeated roof repairs may point to deterioration that needs more substantial attention.
Insurance is not a substitute for maintenance, but an unresolved problem can lead to more serious damage. It may also make it harder to establish when the damage began and what caused it.
Agents should keep a clear record of reports, inspections, contractor visits and completed work.
8. Security has changed
Changes to locks, doors, windows, alarms or access arrangements may be relevant to the policy.
The agent should alert the landlord if:
- External doors or windows are damaged
- Locks have been replaced with a different type
- An alarm is no longer operating
- Keys have been lost
- The property has been broken into
- Contractors or former occupants still have access
- Communal entrance security has deteriorated
Policy conditions can differ, so the landlord should check whether particular security standards apply.
9. The property description may be inaccurate
Agents sometimes hold more current information than the landlord’s insurance documents.
An inspection or management visit may reveal that the property:
- Has more bedrooms than the policy records
- Includes a flat-roofed section
- Has been extended or converted
- Contains landlord-owned furniture
- Has outbuildings or communal areas
- Is of non-standard construction
- Is divided differently from the original description
These details should be passed to the landlord so that the information used for insurance can be checked.
10. A possible claim has not been reported
A landlord may decide to wait and see how expensive the damage becomes before contacting the insurer. This can create difficulties if notification is delayed or repairs begin before the insurer has had an opportunity to assess the loss.
Agents should encourage landlords to contact their broker or insurer promptly when an insured event may have occurred. Reporting an incident does not guarantee that a claim will be accepted, but early notification allows the insurer to explain what information and evidence will be required.
Create a simple reporting process
Letting agencies can make insurance awareness part of their existing management procedures.
A practical system might include:
- An insurance prompt when a tenant gives notice
- A question about planned works before approving contractors
- Dated photographs from inspections
- Clear records of changes in occupancy or use
- Immediate escalation of serious damage
- A reminder for landlords to check their policy documents
- Confirmation that the landlord has been advised to contact the broker or insurer
The agent’s role is not to interpret an insurance contract unless authorised and qualified to do so. It is to recognise a potentially important change, create an accurate record and make sure the landlord knows about it.
Help your landlords check their insurance
Letting agents are in an excellent position to help landlords avoid relying on outdated property or tenancy information.
NetRent works with Clear Insurance Management and its experienced property-insurance team. Landlords can send us their existing renewal documents so the property details, cover, conditions and premium can be reviewed properly.
We can also help when a landlord buys another rental property, changes how an existing property is occupied or needs to discuss an unusual risk.
Telephone: 01352 721300
Email: insurance@netrent.co.uk
Spotting a change early gives the landlord time to ask the right insurance questions before it becomes a problem.
NetRent does not provide legal advice. This article represents our understanding of rental property law.