What is malicious damage in landlord insurance?
It can be a landlord's worst nightmare—your rental property is vandalised by burglars, vandals or even tenants, leaving you with thousands of pounds worth of damage. Will your insurance cover the repairs? It depends on whether or not your landlord insurance covers malicious damage—and if it covers malicious damage by tenants, as this is treated differently than damage by someone not legally allowed on your property like a burglar or vandal.
What does malicious damage mean?
The definition of malicious damage is generally any damage caused to property with malicious intent. With malicious damage, a person has unlawfully and intentionally damaged property—accidents do not count as malicious damage, nor does damage that was not carried out maliciously. Malicious damage may or may not be covered by insurance.
Malicious damage can lead to significant repair costs, often amounting to thousands of pounds, depending on the extent of the damage.
What is malicious damage in landlord insurance?
Malicious damage in landlord insurance may cover all malicious damage, no matter who did it, or a policy may only cover burglary or vandalism damage—not damage by the tenant or another person legally on the premises. When it comes to landlord insurance, there are two types of malicious damage:
- Malicious damage caused by someone not legally allowed to occupy the premises
- Malicious damage caused by a tenant
The first type—malicious damage caused by someone not legally allowed to occupy the premises—is commonly covered by landlord building and contents insurance. People not legally allowed to occupy a property can include former tenants who won't to leave after their lease has expired or during an eviction process, squatters, etc.
Malicious damage caused by tenants
Malicious damage caused by a tenant is typically not included in standard landlord insurance policies; however, many insurers offer this coverage as an optional add-on for an additional premium, which may vary by provider.
However, not all landlord insurance providers offer this feature, even as an add you're willing to pay extra for.
Even when it is available, malicious damage by tenants cover will have conditions that limit the cover. For instance, it might not protect properties that are let to higher-risk tenants such as students.
Landlord insurance malicious damage cover
Malicious damage insurance for landlords covers the cost to repair or replace property intentionally damaged by burglars, vandals or other people not legally allowed to be on a property. It may or may not cover malicious damage by tenants. Coverage can vary significantly from provider to provider, so it is crucial to carefully compare policy terms and seek advice if necessary to ensure adequate protection. You may need to pay an extra premium to get cover for malicious damage by tenants.
Examples of malicious damage to property
- Spray painting graffiti on the walls of a property.
- Setting a fire intentionally.
- Breaking windows.
- Placing glue into locks.
- Ransacking a property.
- Ripping out kitchen units.
- Punching holes in doors and walls.
- Vandalising furniture.
- Flooding a property by closing a drain and leaving the water running.
There may be deliberate damage caused to a property without malicious intent, that would not be covered under landlord insurance malicious damage cover. For example, cutting down branches to a tree to let more light into a home without the landlord's permission. Or hanging heavy shelves that damage a wall. These might not qualify as 'malicious damage'.
The law
It is a crime to vandalise property under the on_current="true" url="https://www.legislation.gov.uk/ukpga/Vict/24-25/97/crossheading/injuries-to-buildings-by-tenants/enacted" title="Malicious Damage Act 1861[/link, Section 13, damage by tenants" nofollow="true"]Malicious Damage Act 1861, Section 13, which states that individuals unlawfully damaging property may be guilty of a misdemeanor:
"Whosoever, being possessed of any Dwelling House or other Building, or Part of any Dwelling House or other Building, held for any Term of Years or other less Term, or at Will, or held over after the Termination of any Tenancy, shall unlawfully and maliciously pull down or demolish, or begin to pull down or demolish, the same or any Part thereof, or shall unlawfully and maliciously pull down or sever from the Freehold any Fixture being fixed in or to such Dwelling House or Building, or Part of such Dwelling House or Building, shall be guilty of a Misdemeanor."
For updated interpretations and tenant rights, refer to recent legal analyses.