Property News

We look at the four most common insurance claims made by landlords in Scotland today.

According to AXA UK, they are:

1.      Water damage
2.      Accidental damage
3.      Storm damage
4.      Malicious damage

1. Water damage

Water can do considerable damage to a property, causing anything from a bit of troublesome damp to a full-on flood. Leaking or burst pipes are the most common cause of water damage, which is why it's so important to keep a close eye on all pipework. While you'd hope they would notify you of any concerns, you shouldn't rely on your tenants to do the job of a regular inspection of the pipework. Quarterly inspections are sensible - and it's best for you or someone acting on your behalf to make each inspection. Remember that you'll need to give at least 48 hours' written notice of each inspection. And, in the interest of maintaining a good relationship, try to schedule inspections for a time that suits your tenants.

In addition to leaking or burst pipes, other possible causes of water damage include missing or slipped roof tiles, leaky window frames and malfunctioning dishwashers or washing machines.

Left unchecked, even minor water ingress can cause major long-term problems in a property, potentially even weakening its structure. Clearly, this has the potential for time-intensive and expensive repairs or, if these are not done, for the home to lose value. Poorly maintained properties ultimately translate to lower sold property prices. This is bad news for anyone, including an investor who may be relying on the capital in the property to, for example, help fund their retirement.

There are also possible health concerns, especially if a damp property results in black mould. This ought to be a real concern for any landlord, particularly in light of the death, from respiratory failure, of a young child living in mould-infested social housing in England in 2022. In Scotland, landlords who fail to deal with damp and water ingress are likely to find themselves reported to Environmental Health and perhaps ultimately to the Scottish Public Services Ombudsman and or taken to the sheriff court.

It is acceptable to remind your tenants of their responsibilities towards helping keep the property free from mould, damp and water ingress. In particular, you could ask them to:

- Check for signs of damp, mould and mildew, and to let you know if they find anything. (This should be in addition to your own regular checks of the pipework.) Common signs include:

        - damp, musty smells;
        - visible mildew or mould on walls, floors or ceilings;
        - walls, floors or ceilings that are cold and damp to the touch;
        - excessive window condensation;
        - peeling or lifting wallpaper; and
        - dark, discoloured patches on walls or ceilings.

- Open windows and / or run the extractor while cooking, showering or running a bath.

- Close internal doors while cooking, showering or bathing.

- Try to dry clothes using a vented tumble dryer (if one is fitted) or, where possible, outside. Clearly, you'll need to be mindful of local weather conditions and also of the electricity cost of running any sort of tumble dryer.

- Open bedroom windows for 10 minutes after getting up. This helps condensation that's built up in the room overnight to escape.

- Heat the property to at least 15C. Again, you'll need to be mindful that your tenants may not be able to afford to do this - and, unless you're prepared to pay the heating bill, you cannot compel them to use the heating. You could, however, consider pointing them towards Home Energy Scotland for support and further advice if you believe they are having trouble affording heating bills.

2. Accidental damage

Wear and tear is inevitable in any home, whether it's owner-occupied or let to tenants. Fair wear and tear might include chipped paint and worn carpets. Although accidental damage insurance cover can't protect against these inevitabilities, it can sometimes be hard to judge which side of the line something falls on. As a very general rule, damage to a property might include broken windows, ripped curtains or holes in the walls. This is where accidental damage cover may come in very useful. However, you can reduce the risk that you'll have to claim on it by taking a few precautionary measures. For example, pre-stain-treating carpets, curtains and other soft furnishings may mean that spilt drinks and the like will not mean that they need specialist cleaning or, worse, replacement. Fixing large, heavy pieces of furniture to the walls is another sensible precaution. This will protect the piece of furniture itself and, more importantly, ensure that it can't topple over or be pulled onto a person or pet.

3. Storm damage

Even in Scotland's relatively temperate climate, storm damage can be a real issue. Rain, wind, snow and hail can all cause damage that is expensive and inconvenient to remedy. Keeping the property, especially its roof and windows, in good repair can help head off trouble before it happens. However, a good storm damage insurance policy is a very useful backup.

4. Malicious damage

Unfortunately, the fourth most common reason for a landlord to claim on their insurance is malicious damage.

Crime is the most obvious cause of malicious damage. If you're worried about your property suffering in this way, installing a burglar alarm and other appropriate security measures are a sensible precaution. If you're still looking for an investment property, take the time to check crime statistics for the neighbourhoods and roads you're considering. Bear in mind that higher crime areas often mean lower sold property prices. While this can be tempting, you may come to regret it if your property is repeatedly targeted by burglars.

Sometimes malicious damage is due to a tenant's behaviour or the behaviour of someone they have invited into the property. This is one reason why references are so important, especially among demographics statistically more likely to hold parties (for example, students). However, as, of course, no reference comes with a gold-plated guarantee, a robust insurance policy is a wise backup.

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