An empty flat between tenancies can still be covered for lost rent if insured damage, such as a burst pipe, stops it being let. Whether it is depends on the wording of your landlord insurance policy, so check it before writing the income off. Handling claims like this is included in our Fully Managed service.
It is easy to see why landlords assume otherwise. A tenancy ends, the property is briefly vacant and then something happens, perhaps a burst pipe or a serious water leak, which leaves it unable to be occupied for several months. There was no tenant paying rent on the day of the incident, so it seems logical to write the lost income off. We would not make that assumption without reading the policy first.
Landlord insurance can include cover for rental income, although the circumstances in which it becomes payable vary from one policy to another. MoneyHelper lists rental income among the cover commonly available under landlord insurance, and Financial Ombudsman decisions show how much the wording of an individual policy matters when deciding whether loss of rent is covered.
An empty flat can still have an income value
Consider a Glasgow flat that has just come back from a tenant and is about to be marketed again. If an insured escape of water makes it uninhabitable for four months, the fact that nobody was living there when the pipe burst does not by itself settle whether the landlord can claim for the rent lost during those four months.
The insurer will look at the policy wording, the cause of the damage, the condition and status of the property and the evidence supporting the claim. Some policies also contain specific conditions or exclusions for properties left unoccupied for extended periods, which is another reason to check the policy first.
We have dealt with loss-of-rent claims for managed properties that were vacant when the insured event happened. That experience has made us cautious about accepting an early “there was no tenant, so there is no rent to claim” conclusion. Sometimes the answer will still be no, and sometimes it will be yes, which is why it is always worth asking.
Every empty week has a cost, as we show in Glasgow rents are still rising, and the bigger question is whether your property is priced right.
A good claim looks beyond the repair bill
When a property suffers substantial damage, attention naturally goes first to putting the building back together. Flooring, plasterwork, decoration, kitchens and electrical work can quickly add up to a sizeable claim, but the physical repair is only one part of the landlord’s position.
Depending on the policy, there may also be rental-income cover. Where an existing tenant has to move out because insured damage has made the property uninhabitable, alternative-accommodation provisions may also become relevant.
Handling an insurance claim as part of property management means looking at the whole situation, not just arranging a contractor and sending the invoice to the insurer. It can involve:
- Liaising with the insurer and loss adjuster
- Supplying tenancy and rental evidence
- Coordinating access and repairs
- Keeping the landlord informed
- Making sure valuable parts of the policy are not overlooked
One of the quieter benefits of full management
Most landlords choose a managing agent because they want the day-to-day work taken care of: finding tenants, collecting rent, arranging repairs, inspections, compliance and the issues that come up during any tenancy. Insurance claims are less visible until you actually need help with one.
When that day comes, having someone who already knows the property, holds the tenancy records, can show its rental value and can coordinate the repairs makes an unpleasant situation much easier to manage. Small problems handled late are one of the hidden costs we describe in the real cost of a poorly managed tenancy.
If a rental property is damaged between tenancies, our advice is simple: do not assume an empty property means there is no rental-income claim, and check the policy and the circumstances first. At Infiniti Properties, insurance-claim handling is included in our Fully Managed service, alongside the everyday work of managing the tenancy and the property.
Letting an empty property?
Our Fully Managed service finds the right tenant and looks after the rent, repairs, inspections and compliance for 10% including VAT, plus £200 per new tenancy. Fees only start when your tenant moves in.