Can malicious damage be deducted from the deposit?
If your property is not returned in the same condition as it was at the beginning of the tenancy, then you may be able to deduct costs from the tenant’s deposit
If your property is not returned in the same condition as it was at the beginning of the tenancy, and there is evidence of damage, whether it’s accidental or malicious, then you may be able to deduct costs from the tenant’s deposit rather than claim on your insurance (but remember, there is usually an excess payment to pay when you claim).
Any deductions from the deposit must always allow for fair wear and tear, and sometimes the deposit may not cover all the damage, depending on the extent of it.
Sometimes malicious damage is so extensive that landlord insurance is needed both to cover the repairs and the loss of rent while the property is being repaired.
Some landlord insurance policies will only cover you for damage caused by third parties who are not legally allowed to occupy the property, not tenants or their guests, so it’s important to check your policy to see whether you’d be covered if tenants, guests or a third party cause malicious damage to your property.
Total Landlord Insurance’s Premier policy offers extensive property disputes support and covers malicious damage caused by tenants and their guests; up to £5,000 for contents and £25,000 for buildings, so you’re covered for almost any eventuality.
Our Premier policy offers protection against malicious damage by tenants and their guests, as well as cover for loss of rent resulting from the need to carry out repairs. Bear in mind, you will need to provide evidence that you did all you could to mitigate against the damage before we can pay out for a claim. For example, you will need to show that your tenant passed a full and robust reference check and that you carried out regular inspections on your property; claims will not be paid out if landlords aren’t carrying out inspections or completing full referencing checks.
So, while having the right insurance offers peace of mind, it’s important that you do all you can to minimise the risk and protect your property as best you can against malicious damage happening in the first place.
Yes, my policy covers malicious damage caused by tenants and their guests.
No, my policy does not cover malicious damage caused by tenants and their guests.
