Pandemic Aftershock: landlord insurance pay-outs decline by -33%

Pandemic Aftershock: landlord insurance pay-outs decline by -33%


Todays other news
In the past four years 50% of buyers have been...
The number of first time buyers is up 19% in...
Almost a fifth of sales now encounter gazundering, a firm...
Details are coming soon - but no real details yet...
Currently the deadline is April 1...


The pandemic has had lasting effects on the property sector and market analysis from Total Landlord Insurance discloses that the average proportion of a landlord insurance claim being paid out has dropped by -33% since the pandemic.

Melissa Choules, lead claims technician at Total Landlord Insurance, commented: “The pandemic was an incredibly difficult time for everyone, not least landlords and tenants. The latter struggled with being locked within their homes while facing genuine concerns about health, income, and careers, while landlords had to grapple with an eviction ban even in the face of growing rent arrears and, in some cases, increasingly poor tenant conduct.”

“The result of which has perhaps been larger claims than they may have made otherwise in order to reset after the impact of the pandemic. However, with extensive measures in place to protect tenants during this period, many landlords have found that the reality of what can be recouped is some way below their expectation, albeit consistent with the pre-pandemic market.”

A look at history for answers

Back in 2019 landlords submitted insurance claims totalling £2.5 million to Total Landlord Insurance, with water and fire damage leading the way as the most expensive claims. Of this total, £2.1 million or 86% was paid out by Total Landlord Insurance.

By 2021, however, the picture had significantly changed as the total number of annual landlord insurance claims rose from £2.5 million to £4 million, while actual insurance pay-outs remained stable at £2.1 million.

To this end, the proportion of total claims paid was 53% in 2021 – a drop of -33% compared to 2019.

Telling data

So, while the sum being paid out has remained largely consistent, there has been a sharp spike in the sums being claimed by landlords in the first place.

Indeed, the data clearly depicts that Total Landlord Insurance’s pay-outs remained steady while the total sum nearly doubled. Interestingly, the biggest noticeable decline in the proportion of claims paid between 2019 and 2021 was for those to landlord liability insurance which is insurance that covers the landlord in the event that a tenant is injured inside the property.

Landlords submitted liability claims of £44,400 in 2019, where 68% of which was paid out by the provider. However, in 2021, total liability claims rose to £125,500, of which just 8.6% was actually paid – marking a decline of almost -60% compared to 2019.

Things rings true for storm damage claims as well, in fact, Total Landlord Insurance double the amount it paid out for storm damage claims between 2019 and 2021, yet the amount being claimed rose even more, from just under £338,000 to more than £1.5 million.

Share this article ...

Join the conversation: Login and have your say

Want to comment on this story? Our focus is on providing a platform for you to share your insights and views and we welcome contributions. All comments are screened using specialist software and may be reviewed by our editorial team before publication. Introducer Today reserves the right to edit, withhold or delete comments that violate our guidelines, including those that harass, degrade, or intimidate others. Users who post such content may be banned from commenting.
By commenting, you agree to our Commenting Terms of Use.
Recommended for you
Related Articles
Details are coming soon - but no real details yet...
There's been speculation that Consumer Duty could be watered down...
A free service claims to assist landlords imeeting new energy...
It will take no less than 18 years for all...
A prominent agency expects anxious buyers to keep searching...
Lenders are being accused of refusing to lend against properties...
Recommended for you
Latest Features
In the past four years 50% of buyers have been...
The number of first time buyers is up 19% in...
Almost a fifth of sales now encounter gazundering, a firm...
Sponsored Content
Historically second charge mortgages or secured loans as they are...
Lenders must say what they mean and mean what they...
Fraudsters attacking the conveyancing sector, successfully stealing large sums of...

Send to a friend

In order to send this article to a friend you must first login. Click on the button below to login or sign up.

No one likes pop-ups ...
But while you're here