Landlords naturally expect tenants to take reasonable care of their rental property. In most cases, that trust is well placed. Unfortunately, there may be occasions when a tenant – or potentially their friends or visitors – deliberately causes damage to the property or the landlord’s contents.
It is therefore understandable that landlords often ask whether their insurance covers malicious damage.
Many of the landlord insurance policies available through Cover4LetProperty include cover for malicious damage, subject to the terms, conditions, exclusions and limits set out in the individual policy documentation.
The extent of cover can vary between policies, so it is important to check your policy wording to understand exactly what is and is not insured, together with any applicable excesses or claim limits.
What is malicious damage?
The key difference between accidental and malicious damage is intent.
Accidental damage is generally unexpected and unintentional. A tenant might, for example, accidentally damage a fixture while moving furniture.
Malicious damage, on the other hand, involves damage that has been caused deliberately. Depending on the circumstances, examples might include deliberately smashed windows, damaged furniture, holes kicked in walls or doors, graffiti or arson.
It is important not to assume that damage is malicious simply because it is extensive or expensive to repair. Whether an incident meets the definition of malicious damage will depend on the circumstances and the specific terms and conditions of the insurance policy.
Similarly, ordinary deterioration of a rental property is not generally the same as malicious damage. Properties inevitably experience a degree of wear and tear during occupation, and landlords should allow for this when assessing the condition of the property at the end of a tenancy.
Protecting your property against malicious damage
It is not always straightforward to establish how damage occurred or whether it was accidental or deliberate. Keeping comprehensive records of the property’s condition can therefore be particularly useful.
A detailed inventory is a good starting point. Before a tenant moves in, record the condition of the property, its fixtures, fittings and any contents you provide. Where appropriate, support the inventory with clear, dated photographs or video.
Ideally, the tenant should be given an opportunity to check the inventory and confirm that it accurately reflects the condition of the property at the start of the tenancy.
Regular inspections may also help landlords identify maintenance issues or damage before they become more serious. Any inspections should, of course, be carried out in accordance with the tenancy agreement and the landlord’s legal obligations regarding notice and the tenant’s right to quiet enjoyment.
Other sensible precautions typically may include:
- keeping copies of inventories, photographs and inspection reports;
- maintaining records of repairs and maintenance carried out at the property;
- documenting significant damage as soon as it is discovered;
- taking photographs before arranging repairs, where it is safe and practical to do so;
- retaining relevant invoices, quotations and receipts; and
- keeping communications with tenants factual and professional.
Avoid making assumptions about how damage occurred until the circumstances have been established. Describing damage as deliberate or malicious without sufficient evidence could unnecessarily escalate a disagreement with a tenant.
What should you do if you discover malicious damage?
If you discover significant damage that you believe may have been caused deliberately, take photographs and make a written record of what you have found. Avoid disposing of damaged items or arranging non-urgent repairs until you have checked what evidence your insurer may require.
If you intend to make an insurance claim, contact your insurer as soon as reasonably possible and follow the claims procedure set out in your policy. Depending on the nature of the incident and your policy terms, you may also be required to report deliberate or criminal damage to the police.
You should also take reasonable steps to prevent further loss or damage – for example, securing a broken door or window – provided it is safe to do so.
Good records cannot prevent malicious damage, but they can provide valuable evidence of the property’s previous condition and help establish what has happened.
Most importantly, check your individual landlord insurance policy rather than assuming that malicious damage is automatically covered. Although many Cover4LetProperty policies provide malicious damage cover, the precise protection, limits, conditions and exclusions will depend on the policy you have chosen.
