Pandemic payout - landlord insurance claims rose 13% during Covid crisis

Total Landlord Insurance claims that throughout the Covid-19 pandemic, insurance claims increased by 13%. The most common type of claim was caused by tenant damage.

During the crisis, properties could not be accessed as often by landlords because of measures in place to keep all parties safe. As a result, monitoring homes become more of a challenge throughout the crisis.

The timeline between 2019 and 2021 saw landlord insurance claims raise from 536 yearly to 603. This is a 13% rise. 

Reasons for landlord insurance claims

The most common reason for landlord claims during the pandemic was storm damage. Claims under these circumstances increased by a massive 93%. 

Malicious damage was the second most popular reason for making a claim as this rose by 50% between 2019 and 2021. 

Melissa Choules, the lead claims specialist at Total Landlord Insurance, commented: “It’s also interesting to see such an increase in claims resulting from malicious damage. This could suggest that, during the pandemic, tenants were feeling increasingly frustrated, trapped, and unable to move. At the same time, some tenants might have grown to feel resentment towards landlords who still expected them to pay the rent as normal despite significant reductions in income and job security. 

“It was an incredibly difficult time for so many people, and with this new cost of living crisis now upon us, life for tenants isn’t going to get any easier.”

Sizable insurance claims 

During this challenging time, the average landlord insurance claim size also increased. Total Landlord Insurance claims that there was a 29% rise as the average claim rose from £5,773 to £7,429. 

Liability insurance claims increased by 270% from £1,306 to £4,827 between 2019 and 2021. 

The average claim for storm damage increased by 140%, break-in claims rose by 101% , and claims for underground services rose 95%.

Melissa Choules further explains: “The pandemic made it almost impossible for landlords to gain access to their properties and along with the direct impact of the pandemic on tenants themselves, this suggests this may have contributed to an increase in insurance claims.”

“With landlords also unable to maintain their rental properties for such a prolonged period, the average size of a claim has also increased as they look to rectify multiple years of damage and wear and tear. “