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Monday, February 06, 2012

Malicious damage cover

I've just received an email from another unfortunate landlord who has been a victim of drug producers.

His rental property has just been raided by the police just six weeks after it was let by his regular letting agent. The tenants received all the regular tenant checks and seemed very nice but decided to set up a small cannabis farm in one of the rooms of the property.

Fortunately for the landlord they were a small scale operation that he describes as amateurs, and the damage caused was limited to just one room. The landlord estimates his repair costs to be  approximately no more that £500-600.

The bad news is that he contacted his insurer and found that his policy like many landlord insurance policies did not cover malicious damage.

So just imagine if the tenants had been a full scale cannabis producers that had wrecked the entire rental property.

We can't remind landlords enough that they need to make sure that their landlord insurance policy covers them for all the possible eventualities.

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IS. Property said...

I think this is a must for landlords. My property was damaged and it was only luck I was covered as I had not read the terms and conditions.

Anonymous said...

I have malicious damage cover, but illegal activity is excluded.
The insurance company refuse to pay on the basis of cannibas cultivation. The police found no evidence of cannabis - just the damage. Does an insurance company have to prove illegal activity (they say holes in ceilings, chmney breasts destroyed.. all tell tale signs)