Vacant Between Tenancies? Your Landlord Insurance May Still Protect the Rent

One of the more useful things we have learned from handling insurance claims for landlords is that an empty property does not always mean there is no rental income to claim for.

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 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 exact circumstances in which it becomes payable vary from one policy to another. MoneyHelper specifically lists rental income among the cover commonly available under landlord insurance, while Financial Ombudsman decisions show just how important the wording of an individual policy can be 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 happened to be living there when the pipe burst does not necessarily tell you whether the landlord can claim for the rental income 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 around properties that remain unoccupied for extended periods, which is another reason to check rather than assume.

We have dealt with loss-of-rent claims for managed properties where the property was vacant when the insured event occurred. That experience has made us fairly cautious about accepting an initial “there was no tenant, therefore there is no rent to claim” conclusion.

Sometimes the answer will still be no. Sometimes it will not.

The useful part is knowing to ask.

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 turn into 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.

For us, handling an insurance claim as part of property management means looking at the whole situation rather than simply arranging a contractor and sending an 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 and making sure potentially valuable parts of the policy are not overlooked.

It is 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 dealing with the inevitable issues that arise during a 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 provide evidence of rental value and can coordinate the repair process can make an unpleasant situation considerably easier to manage.

So if a rental property is damaged between tenancies, our advice is fairly simple: do not assume an empty property means there is no rental-income claim. Check the policy and the circumstances first.

At Infiniti Properties, insurance-claim handling is included within our fully managed property service, alongside the everyday work of managing the tenancy and the property. Infiniti’s current landlord page confirms its fully managed service covers letting and day-to-day management for Glasgow landlords.

If you are considering handing over the management of a Glasgow rental property, you can also start with a free instant rental valuation and see what your property could achieve in the current market. The valuation tool is live and accepts property details directly.