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If your rental property or its contents were to incur unintentional damage, you could benefit from having accidental damage cover in place. Accidental damage is not an insurance policy in itself, but rather, a type of cover that can be included in buildings or contents insurance.
Furthermore, accidental damage may not be covered as standard in your landlord insurance policy. So, if your tenant spilled red wine on the living room’s cream carpets, for instance, you may be unable to claim for the cost of replacing the carpet without additionally including accidental damage cover in your landlord insurance package.
Accidental damage is usually defined as loss of function or damage caused by unforeseen or unintentional circumstances. However, some insurance providers may define accidental damage differently, which could affect the outcome of a potential claim. It’s important that you fully understand how your insurer defines accidental damage before agreeing to a policy.
For example, if a storm was to blow some tiles off your roof, one insurer may consider it to be accidental damage and reimburse you for repairs. Another may determine that the roof was in a poor state of repair to begin with, and therefore that the damage was not accidental but caused by neglect. Yet another insurer may require an entirely different policy altogether to cover storm damage.
As previously mentioned, an accidental damage insurance policy can protect against genuine accidents, such as unintentional breakage or spillage. However, which incidents, exactly, are covered can vary from insurer to insurer. Some may distinguish between protection for buildings and for contents, whilst other may not.
There are a few things that are commonly not covered by accidental damage insurance, such as:
You should ensure that you fully understand the cover and limitations of any insurance you intend to purchase. Failing to do so could mean that you are left without vital financial support if an unexpected event should affect your business.
Properly understanding your policy can also help you to determine whether you need to purchase more – or less – cover, for instance if a threat your business is vulnerable to is excluded from standard cover.
To truly provide the correct answer here, it’s helpful to talk to a regulated insurance broker, who will be able to ask you the relevant questions for your risk exposure, as each landlord’s needs are different. The extent of cover required, and the sum insured are likely to be the main influencers on price. The size and value of your property may also be taken into consideration. For example, a landlord with just one domestic rental property would, logically, pay a very different price for cover than a landlord who wanted to cover a large portfolio of both domestic and commercial properties.
It’s for this reason that you should speak to a business insurance broker about your landlord insurance needs – so that you can get the cover that’s right for you.
In order to make sure that you’re getting the right cover for your business at a competitive price, it can help to run a landlord insurance comparison. Using a free service, such as the one Make It Cheaper Financial Services provides, can take all the hassle out of this process.
A short conversation with one of our UK-based experts is all it takes for you to get a bespoke landlord insurance package – including accidental damage or commercial property insurance if necessary – at a price that suits you.
Call 0800 970 0077 to speak to one of our experts or click the ‘get a quote’ button below.