Can letting agents force me to get AD cover?

Catatonia

I'm moving in to a flat on Friday, and went in to the letting agents yesterday to give details of my references etc and get a draft copy of the tenancy agreement. The agent told us that we need to take their insurance for contents and accidental damage to the landlord's fixtures and fittings (it's unfurnished, so I guess they mean the white goods by this) or bring proof on Friday that we are insured with someone else. Now, I was planning on getting contents cover but I don't want accidental damage cover as I think it's a rip off. I've done some quotes, and it doubles the price of my cover. They can't make us get accidental cover, can they?

A letter to me (given to me yesterday) states:

"Please find enclosed a copy of the invoice... It is a condition of the Tenancy that the Tenant holds insurance to protect the tenant's personal possessions and accidental damage caused by the tenant to the furniture, fixtures and fittings at the property."

But, in the actual (draft) tenancy agreement just states (can scan in full wording if needs be):

"7.4.1 Not to do anything which might cause the Landlord's insurance policy to become void.

7.4.2 The tenant will promptly notify the landlord of any damage to property.

7.4.3 The tenant is strongly advised to take out insurance for their possessions."

And later:

"The landlord agrees:

8.2.1 To insure the premises and the fixtures and fittings as specified in the inventory."

So it just looks like the landlord, rather than the tenant needs to get insurance? Is there anything legal I can quote at them about forcing me to get AD cover being unenforceable?

I would happy to pay to replace/ fix stuff in the unlikely event that I did damage it. I just don't want to have to pay out for AD cover I am unlikely to use (I don't have it on my current home, as I think it's a waste of money). Surely this should be a decision I make, and not the landlord/ letting agent?

olly300

If you are in England and Wales this is considered to be an unfair term. However you would have to go to court to prove it was. Your tenancy deposit is the money they use for covering accidental damage.

Catatonia

Thanks, this is in England. Is there anything specific I can quote at them about it being an unfair term?

princeofpounds

Not really, unless you fancy trying to track down a relevant legal case. Unfair terms are decided in court on a case-by-case basis, although the OFT issues guidance to what is considered unfair and is usually right, a judge can deem otherwise. However, this is very very very likely to be an unfair terms as your insurance is your own business (just like your utilities).

The problem here is that if you already have the tenancy, they couldn't force you to take insurance. But they *can* refuse to give you the tenancy as they can let to who they like.

Your only remedy would be to get an insurance you can cancel right away once the tenancy is done for little cost.

Alternatively, you can try to stand your ground and involve the LL directly, who might not want to lose tenants just because of this. Or the whole thing might be his/her idea and you won't be supported.

Catatonia

Cheers, I might get some and then use the 14 day cooling off thing to cancel straight away and then take out AD-free cover.

olly300

Catatonia wrote: »

Cheers, I might get some and then use the 14 day cooling off thing to cancel straight away and then take out AD-free cover.

To be honest due to the admin fee on insurance you are probably better of keeping the policy going.

However you can refuse to claim on it stating as the item doesn't belong to you you can't claim.

tbs624

The LA/LL would need to provide you with at least a summary of the terms of the LLs insurance policy if clause 7.4.1. is to be held as a reasonable term, because clearly you cannot agree to something about which you have no knowledge.

The OFT guidelines do say that it is a potentially unreasonable obligation for a LL/LA to have a clause in a tenancy agreement insisting on specific insurance.

Your LA/LLs request is in a separate letter though so you should negotiate and refer them to both their own contract terms and the OFT guidance .Remind them that your tenancy deposit is there to cover damage, as Olly says

It should be entirely up to you whether you take out contents insurance for your own belongings, and the LL/LA can only "advise" that you do so, as per the wording of your contract's clause 7.4.3 If you decide to cover your own contents with an insurance policy of your choice it doesn't simply release the LL/LA from their obligations if their own actions or omissions cause damage to your stuff.

The LAs often push this with LLs because they obviously make commission on any insurance policies taken out through them..

Some folk may of course consider taking out a policy of their own choice at the latest possible hour and cancelling asap, having checked online in advance on what admin fee would be payable ..............;) Edit - now seen other posts, obviously in same vein

maninthestreet

They can't make you take out THEIR insurance.

olly300

Once you get the property report them to the local trading standards.

MissMoneypenny

Would your house contents policy cover someone elses belongings if they don't live in that house? My insurers wouldn't cover a skisuit that my son hired for a school trip as he didn't own it. We just went to another shop who had insured their own suits.

It might be safer to get contents insurance if you elect to take *Legal Cover too. Read the smallprint first to check that they don't exclude taking legal action against your landlord (just in case you have a problem landlord).

I found that the Lloyds TSB contents insurance Legal Cover exclusions, stated that they did not cover you for legal fees against your landlord. Saga stated they would give up to £50,000.00 legal cover if you needed to take your landlord to court or defend yourself in court.

Don't forget to use one of the cashbach sites to get cashback on your policy ie
www.topcashback.co.uk

*Legal Cover - An insurance you can add on to your house contents insurance policy (for a just a few pounds every year) that might cover you for solicitors fees if you need to take legal action against someone or to defend legal action against you. You need to get authorisation from your insuance company before appointing a solicitor.
Legal Cover limits vary from company to company.

Gwhiz

Interestingly I just took out a policy with homelet which covers accidental damage. It was cheaper than my normal insurance so happy to take it.