Malicious Damage Claims In Property Portfolios

What Happened?

A tenant abandons a property after arrears. The managing agent discovers broken doors, damaged kitchen units, graffiti, removed fixtures and evidence that the property was unsecured for several days.

• Record the date, address, occupancy and people affected.
• Capture photographs and videos before emergency repairs remove evidence.
• Notify the broker or insurer quickly where policy conditions require prompt notice.
• Keep tenant, contractor, managing agent and lender communications organised.

Typical Claim Value

GBP 5,000 to GBP 80,000+ depending on damage, security, vacancy period and policy malicious damage wording.

• Separate emergency mitigation, permanent repair and professional fee costs.
• Track rent loss or alternative accommodation separately from physical damage.
• Check whether any policy sub-limits apply to the specific claim type.
• Review whether underinsurance or average could affect settlement.

Likely Insurer Response

The insurer checks whether malicious damage is covered for the tenant type, whether the property had become unoccupied, whether forcible entry or police reporting is required and whether any exclusions apply. Rent guarantee and legal expenses may be separate issues.

• Expect questions about cause, policy cover, quantum and mitigation.
• A loss adjuster may be appointed for larger or complex portfolio claims.
• The insurer may reserve rights if cover, conditions or disclosure need investigation.
• Recovery against tenants, contractors or third parties may be considered where relevant.

Risk Management Lesson

Tenant vetting, inspection frequency, arrears triggers, checkout procedures and vacant property security can change the outcome. Owners should understand when a property becomes 'unoccupied' under the policy.

• Document what changed after the claim and keep evidence for renewal.
• Check whether similar properties need inspections or risk improvements.
• Update managing agent instructions where the claim exposed process gaps.
• Use the claim narrative to show underwriters that the risk has improved.

What happened

Typical claim value: GBP 5,000 to GBP 80,000+ depending on damage, security, vacancy period and policy malicious damage wording.

A tenant abandons a property after arrears. The managing agent discovers broken doors, damaged kitchen units, graffiti, removed fixtures and evidence that the property was unsecured for several days.

Insurer response

Typical claim value: Evidence-led claim review

The insurer checks whether malicious damage is covered for the tenant type, whether the property had become unoccupied, whether forcible entry or police reporting is required and whether any exclusions apply. Rent guarantee and legal expenses may be separate issues.