Discovering serious damage at a rental property is stressful. Whether the cause is a burst pipe, storm damage, fire, escape of water or another insured event, landlords naturally want to know what happens next—and how quickly the property can be restored.
Although every claim is different, most landlord insurance claims follow a recognisable process.
Make the property safe
The immediate priority is the safety of tenants, visitors and contractors. Where necessary, contact the emergency services, isolate the water or electricity supply and prevent access to dangerous areas.
Landlords should also take reasonable steps to stop the damage from becoming worse. This might include arranging an emergency plumber, boarding a broken window or using temporary protection against the weather.
Unless urgent action is essential, contact the insurer before authorising substantial repairs. Keep invoices and receipts for emergency work, as the insurer will decide whether these costs fall within the policy cover.
Notify the insurer promptly
Contact the insurer or the claims number shown in the policy documents as soon as reasonably possible.
The insurer will normally ask for:
- The policy number and property address
- The date and approximate time of the incident
- A description of what happened
- Details of the damage
- Photographs or video evidence
- Information about anyone occupying the property
- Emergency work already undertaken
- Relevant invoices, estimates or reports
Notification does not automatically mean that a claim has been accepted. The insurer must first establish what happened and whether the circumstances are covered by the policy.
Preserve the evidence
Clear evidence can make it easier for the insurer to understand the loss.
Take wide photographs showing the affected room and closer photographs of individual areas of damage. Retain damaged items unless they create a health or safety risk, and avoid disposing of materials until the insurer has confirmed that they are no longer required for inspection.
Keep copies of correspondence, invoices, tenancy records, inspection reports and maintenance documents. If the damage could involve a third party, record their details without accepting liability or agreeing to pay compensation.
The insurer assesses the claim
For a relatively straightforward claim, the insurer may request photographs and repair estimates before making a decision.
For larger, more complicated or unusual losses, it may appoint a loss adjuster. The loss adjuster investigates the circumstances, inspects the property and reports to the insurer. Contractors, surveyors, drying specialists, engineers or other experts may also become involved.
The assessment is likely to consider:
- Whether the policy was active at the time
- Whether the cause of damage is insured
- Any exclusions or policy conditions
- The property’s occupation and use
- Its previous condition and maintenance
- The reasonable cost of reinstatement
- Whether the landlord took steps to limit further damage
- The applicable policy excess
Insurance is designed to respond to insured events, not gradual deterioration or routine maintenance. For example, sudden water damage may be covered while the repair of a worn-out component that caused it may not be.
How the claim may be settled
Insurance generally aims to return the policyholder to approximately the position they occupied before the insured loss. Depending on the policy and circumstances, the insurer may:
- Appoint approved contractors
- Authorise the landlord’s chosen contractor
- Repair or replace damaged items
- Make a cash settlement
- Use a combination of these approaches
The insurer will usually determine the available settlement method under the policy. The excess will ordinarily be deducted or collected, and policy limits may restrict the total amount payable.
Landlords should request a clear settlement breakdown and check what work, materials and costs have been included before accepting a cash offer.
Loss of rent and tenant arrangements
If insured damage makes the property uninhabitable, the policy may include loss-of-rent cover. Some policies may also cover alternative accommodation, but the exact wording, limits and qualifying circumstances vary considerably.
Landlords must continue to consider their responsibilities to tenants. Housing and tenancy law differs across England, Wales, Scotland and Northern Ireland, so the appropriate response may depend on where the property is situated and the terms of the tenancy.
Do not assume that rent automatically stops, that the tenancy automatically ends or that every accommodation cost will be insured. Check the policy and obtain appropriate professional advice where necessary.
Why claims sometimes take longer
Delays can occur when the cause of damage is unclear, specialist reports are required, several parties are involved or repair costs are disputed. Major water losses may also require an extended drying period before reinstatement can begin.
Prompt replies and organised documentation can help. Keep a timeline recording telephone calls, decisions, requested information and agreed actions. If progress appears to have stalled, ask what remains outstanding and when the next update can reasonably be expected.
If a disagreement cannot be resolved, follow the insurer’s formal complaints procedure. Eligible unresolved complaints may ultimately be referred to the Financial Ombudsman Service.
Who does what?
The insurer decides whether the claim is covered, what evidence is needed and how it will be settled.
The broker can help explain the process, communicate with the insurer and ensure relevant information reaches the appropriate claims team. The landlord remains responsible for reporting the incident, protecting the property and supplying accurate information.
Clear provides in-house claims support for policies arranged through Clear. NetRent and Clear cannot take over the management of a claim made under a policy arranged elsewhere, although existing documents can be reviewed to help a landlord understand the position.
Prepare before anything happens
Do not wait for a claim to discover what the policy covers. Keep the schedule, wording, emergency numbers, tenancy records, inventories, photographs and maintenance evidence together in an accessible place.
To discuss landlord insurance or the support available through NetRent and Clear, telephone 01352 721300 or email insurance@netrent.co.uk.
NetRent does not provide legal advice. This article represents our understanding of rental property law.