Buy-to-let property owners have been reminded of the importance of finding an investment that is in good condition, after recent findings revealed a significant proportion of claims are made for making repairs to the building.
According to the latest market research analysis by Total Landlord Insurance, 35.5 per cent of claims are typically made as a result of leaks, such as from burst pipes, a faulty toilet or a broken washing machine, Introducer Today reported.
Following this, 22.4 per cent of claims are put forward due to storm damage, while 13.1 per cent are the result of accidents.
Lead claims technician at Total Landlords Insurance Melissa Choules noted the most common reason for making a claim is because of damage to the property.
“Therefore, a claim can often be avoided if a landlord takes the correct steps to care for and upkeep … their property,” Ms Choules stated.
The average amount of money people claim on landlords insurance is £6,512, making it worthwhile to have as a buy-to-let investor.
However, this increases to £11,568 when it comes to storm damage, with Ms Choules noting: “Unfortunately, the most costly [claims] are often out of [landlords’] control.”
Making sure the property is in good condition and there is landlord insurance to protect against any damage or lost earnings is particularly wise after the Telegraph reported buy-to-let yields have fallen in two-thirds of the country during the last three months. This is the result of rising house prices and landlord taxes.
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