A nationwide survey of tenants by AXA Business Insurance reveals that many of the UK’s rental homes present serious security and safety risks this Christmas. The insurer also anticipates a spike in theft and severe weather damage claims, as many tenants and landlords are unprepared for December’s cold snaps, storms and opportunistic Christmas burglars.
Forty eight per cent – or around 3.9 million – rental homes will be left empty over the holiday period – yet few tenants will inform their landlords or take extra security steps.
Poor awareness of crime and weather risks mean that AXA anticipates a spike in burglary and weather claims from the rental sector this winter.
AXA warns that too many rented homes will rely on creaky, outdated heating systems this winter – two thirds of them lacking the basic safety checks required by law.
Most tenants may be unaware that they are paying too much on their energy bills due to energy failings in the property – only 1 in 5 landlords provide their tenants with energy efficiency certificates, despite this being a legal obligation.
AXA highlights that 57 per cent of private rental properties — equivalent to 4.7 million homes – are likely to have the wrong cover.
AXA’s survey of UK tenants revealed that 48 per cent of the UK’s private rental properties will be left empty for at least part of the Christmas season this year, as their tenants travel abroad or stay with friends/family.
Very few tenants – only 18 per cent – intend to inform their landlord that the property will lie empty, despite vacant properties running dramatically increased risks of burglary, fire and weather damage. This comes on top of relatively poor security arrangements in many rental properties: only 9 per cent have a burglar alarm installed, and only 26 per cent fit locks on all external doors and windows – despite this being a common condition of most insurance policies. Of course, when locks are fitted, there is no guarantee they’ll be used: 40 per cent of tenants admitted they wouldn’t lock all doors and windows before going on a trip!
Meanwhile, tenants are doing little to help their landlords prevent the winter hazard of burst pipes: only 26 per cent say they will leave the heating on low to prevent burst pipes in a cold snap! AXA reminds readers that during Britain’s historic cold snap of 2010, burst water pipe claims amounted to an estimated £7 million per day.
Millions of tenants could be facing an unsafe, or at least, very cold Christmas
AXA’s survey also revealed that almost two-thirds of UK private landlords do not arrange the annual gas safety inspection required by law. Having missed out on a service this year, many of these properties could be entering the winter months with potentially lethal faults. This is compounded by the fact that few rented homes have the final safety net of a carbon monoxide alarm.
Poor energy arrangements also mean that many tenants could be facing the choice between a cold Christmas or a larger than expected energy bill in January. The government estimates that a quarter of rental properties are running such outdated energy systems that they fall into the lowest energy efficiency bands (F and G).
AXA’s survey shows that many tenants may simply not be aware just how much their energy bills are being pushed up as a result: only 19 per cent say they have seen the property’s energy efficiency certificate. AXA reminds landlords that they are legally required to provide this certificate to tenants or run the risk of fines.
“Our findings show that millions of rental properties will be both empty and lacking basic protection from the two villains of the season – opportunistic burglars and cold snaps. December is a red letter month for both. Empty houses filled with new consumer goods are a huge temptation to thieves, while recent years have seen a series of Christmases marred by extreme weather, starting with the historic cold snap of 2010.
Of course, these are risks that you can cover with insurance. But are all rented properties insured? Just last month, the independent research expert DataMonitor revealed that a massive 57 per cent of the UK’s private landlords do not have landlord insurance, wrongly believing that normal home insurance covers a tenanted property. This means that many landlords simply may not be covered if the worst happens”.
*** AXA’s landlord checklist for Christmas 2014 ***
Above all, check your insurance policy! Is it a landlord insurance policy? Does it cover your property when it is tenanted? Many home insurance policies simply do not cover you if you have tenants.
Security
Call your tenant to find out their plans over the holidays; even better, visit them to review your security, winter weather and energy arrangements.
Check all external doors and windows (as well as internal doors if you have multiple tenancies in one building) you have robust locks in place.
Remind your tenant to lock all doors and windows before leaving the property, and activate any alarms too.
Remind your tenant to keep presents hidden from view. It may also do them a favour to remind them that they’re likely to need tenants’ contents insurance for their own items.
Safety
Check when your last gas and electrical safety inspections took place. If it’s more than a year for your gas inspection, you need to call out an engineer as a matter of urgency.
If you have open fires in the property, make sure the chimney has been swept recently.
If you have burglar, fire and carbon monoxide alarms installed – check they’re working and supply spare batteries. If you don’t have any alarms, maybe now is the time to think about them?
Christmas lights should be marked with a safety standard and switched off when the property is empty.
If you’re responsible for communal hallways, get a winter cleaning routine in place to prevent slippery floor surfaces or signpost them – you face a public liability claim if someone slips because the floor is in a hazardous state.
Winter weather
Check your guttering is in good condition and clear out any dead leaves or blockages.
Remind your tenant to leave the heating on low if the temperature is set to fall below +4ºC.
Ensure you and your tenant know the location of stop taps and shut off valves for electricity, gas and water on the property.
If your tenant has a portable heating device, check that your insurance covers you for its use on the property. Due to the fire hazard these devices represent, they are often excluded.
Monitor build-up of snow on rooftops and ensure someone visits the property regularly if it is empty during a cold spell.
