Landlord insurance depends on accurate information.

The premium, cover, terms and insurer’s decision to offer insurance are all based on what the landlord discloses before the policy is arranged or renewed.

That is why material facts matter.

A material fact is information that could influence an insurer’s decision to provide cover, set the premium, apply conditions, exclude certain risks or decline the insurance altogether.

For landlords, failing to disclose something important can create serious problems later.

The issue may not become obvious when the policy is bought. It may only become obvious when a claim is made.

By then, it may be too late.

Disclosure is not just paperwork

Some landlords see insurance questions as routine paperwork.

They provide the property address, tenant type, rebuild value, claims history and renewal details, then focus on the premium.

But insurance is based on disclosure.

The insurer needs to understand the risk. If relevant information is missing, incomplete or inaccurate, the policy may not reflect the true position.

That can affect whether cover is valid, whether a claim is paid in full, or whether the insurer applies different terms.

Landlords should never assume that small details do not matter.

If something may affect how the insurer views the risk, it should be raised.

What might count as a material fact?

Material facts can vary depending on the property, tenant, policy and insurer.

Examples may include:

• previous claims or incidents;
• previous insurance being declined, cancelled or subject to special terms;
• property condition issues;
• flooding, subsidence or structural movement;
• fire damage or previous escape of water issues;
• the property being unoccupied or likely to become unoccupied;
• planned works, refurbishment or structural alterations;
• change of tenant type;
• HMO use or licensing requirements;
• supported living, company lets or asylum seeker accommodation;
• unusual construction;
• listed status;
• commercial use or mixed-use elements;
• criminal convictions where relevant to the insurance question asked;
• security issues;
• disputes, damage or known risks at the property.

This is not an exhaustive list.

The key point is that landlords should not decide for themselves that something is irrelevant without discussing it properly.

Tenant type must be accurate

Tenant type is one of the most important areas for landlord insurance disclosure.

A property let to professional tenants may not be treated in the same way as one let to students, benefit-assisted tenants, company lets, supported living occupants, asylum seeker accommodation or other arrangements.

The issue is not whether one tenant type is automatically better or worse.

The issue is accuracy.

If the tenant type has changed and the insurer has not been told, the policy may not reflect the real risk.

This can matter particularly where claims involve damage, unoccupancy, rent issues or tenancy-related circumstances.

A good broker should ask about tenant type before quoting and again before renewal.

Unoccupied property should be disclosed

Unoccupancy can have a major effect on landlord insurance.

A property may be empty between tenancies, awaiting works, under refurbishment, awaiting sale, or vacant for longer than expected.

Insurers often apply specific conditions to unoccupied properties. These may relate to inspections, security, heating, draining down water systems or notifying the insurer after a certain period.

If a property is unoccupied and the insurer has not been told when required, a claim could be affected.

Landlords should not assume that a short void period is irrelevant. The policy wording and insurer requirements need to be checked.

Previous claims and incidents matter

Claims history is another key part of disclosure.

Landlords should be clear about previous claims and incidents, even where the issue was resolved or the landlord believes it was minor.

This may include fire, flood, escape of water, theft, storm damage, malicious damage, accidental damage, subsidence, liability claims or other relevant events.

Insurers use claims history to assess risk.

If claims or known incidents are not disclosed accurately, it may cause difficulties later.

It is better to raise the issue before the policy is arranged than to have it discovered during a claim.

Property condition should not be ignored

Landlord insurance is not designed to replace basic property maintenance.

If there are known defects, structural issues, damp problems, roof issues, dangerous electrics, water ingress, security concerns or other property condition matters, these may need to be disclosed.

A landlord may be planning to repair the problem, but that does not necessarily mean it can be ignored for insurance purposes.

If a known issue contributes to a claim, the insurer may look closely at what the landlord knew and what was disclosed.

A property should be insured based on its real condition, not on assumptions.

Works and refurbishment can change the risk

Landlords often carry out works between tenancies.

Minor maintenance may be routine. But larger refurbishment, structural work, extensions, conversions, roof works, rewiring, plumbing upgrades or works involving contractors may alter the insurance position.

Some policies may require the insurer to be told about certain works.

The insurer may want to know the nature of the work, the value, how long it will take, whether the property will be occupied, and whether contractors have their own insurance.

Landlords should not assume their standard policy automatically covers every situation involving works.

If in doubt, disclose it.

Portfolio landlords need careful disclosure

For portfolio landlords, disclosure can become more complex.

A landlord with five, ten, fifteen or more properties may have different tenant types, property conditions, claims histories, occupancy positions and planned works across the portfolio.

One inaccurate assumption across several properties can create significant risk.

Portfolio landlords should make sure their insurance information is structured, accurate and updated before renewal.

They should also make sure their broker understands the full position, not just the addresses and premium.

A cheap quote based on incomplete information is not a good quote

Landlords naturally want competitive premiums.

But a cheap quote based on missing or inaccurate information is not good value.

If material facts have not been disclosed, the policy may not respond as expected when needed.

The landlord may think they have saved money at renewal, but the real cost may appear at claim stage.

The aim should not be to get the lowest quote by giving the minimum information.

The aim should be to get the best available price and policy based on accurate disclosure.

Your broker should help you disclose properly

Landlords are not expected to be insurance experts.

That is why the broker’s questions matter.

A good broker should help landlords understand what information may be relevant. They should ask about tenant type, occupancy, claims history, property condition, sums insured, previous insurance issues and other matters that could affect the insurance.

If your broker does not ask enough questions, important facts may be missed.

That can leave the landlord exposed.

A renewal should not simply be processed. It should be reviewed properly.

Why NetRent and Clear can help

NetRent has worked with landlords for 23 years. We understand rental property and the practical issues that can affect landlord insurance.

That landlord knowledge matters when disclosure is involved.

NetRent speaks to landlords directly, asks relevant landlord-specific questions and helps ensure the information passed to Clear’s dedicated NetRent insurance team is properly considered.

Clear Insurance Management then use their specialist broking expertise to seek suitable landlord insurance options.

Importantly, Clear do not simply roll landlord policies forward at renewal. They re-broke landlord insurance to help ensure landlords are getting the best available price and policy for their circumstances.

That process helps reduce the risk of renewal being based on outdated or incomplete information.

Do not wait for a claim to reveal the issue

The worst time for a material fact to come to light is during a claim.

By then, the insurer may be reviewing the policy, the information supplied and whether the risk was properly disclosed.

If something important was missed, the landlord may face delay, dispute, reduced settlement or worse.

That is why landlords should deal with disclosure before renewal.

If something has changed, raise it.

If something may be relevant, mention it.

If you are unsure, ask.

Contact NetRent before you renew

If your landlord insurance renewal is approaching, do not renew on incomplete information.

Send your renewal to NetRent before you commit.

Let us review what you have been offered. Let us ask the right landlord-specific questions. Let us see whether Clear’s dedicated NetRent team can provide a competitive alternative based on accurate information.

You may save money. You may improve your cover. You may avoid problems caused by missed disclosure.

But most importantly, you will be renewing with the right questions asked before you commit.

Call NetRent: 01352 721300
Email: insurance@netrent.co.uk

Before you renew, make sure material facts have been disclosed. Send your landlord insurance renewal to NetRent.