Tenants Insurance

LankyMoneySaver

Shortly going to move into a rental flat but have been told by the agency we must have 'Tenants Insurance' in place before we can move in.

From the stuff they sent through this basically sounds like a combination of contents insurance and cover against damaging any of the landlord's property.

I'd never heard of this before and assumed that would just be covered by the damage deposit and our possessions covered by standard contents insurance.

Does anyone know any more about this, cheap companies that provide it, and what level of cover I should be looking for?

Thanks

diddly74

bumping you up as I would like to also know a bit more about this. We are planning to move to a rented property having always owned our homes. Its all new to me. I know in council property you only need to purchase contents insurance - is it not the Landlords responsibility to ensure that the Building insurance is in place?

G_M

Seems a real cheek! It's up to you if you want to insure your stuff. It's up to the LL to insure his own stuff! Your insurance will not cover someone else's property!

If you DO choose to take it out, just google 'tenants insurance and get some quotes.
If you choose not to, and the agency refuses to let to you without, but a policy, show the agency, move in, then cancel the policy in the 14 day cooling off period.

MrsManda

G_M wrote: »

If you choose not to, and the agency refuses to let to you without, but a policy, show the agency, move in, then cancel the policy in the 14 day cooling off period.

Not particularly a great idea as if they found out it'd be a breach of contract. Plus if anything did go wrong and the tenants were expected to pay for it via their insurance then they're going to be in trouble

From the stuff they sent through this basically sounds like a combination of contents insurance and cover against damaging any of the landlord's property.

I've rented a number of houses prior to buying my first one and I've never been asked to buy any form of tenants insurance. And one of my LL was a land lawyer, a nasty piece of work (unfortunately didn't realise until after renting) and wrote lots of non-standard things into the tenancy agreement.

LankyMoneySaver

That's what I did but it always seems to take you to standard contents insurance.

So my understanding of it now is that its basically just contents insurance but needs to also include accidental damage and be of a sufficient level of cover that it also covers all of the landlords property in the flat. For example if we spill something on his sofa or the carpets it would cover that.

I've never had to get this when renting a place before, just contents insurance for my own stuff. Any damage to the landlord's property would be covered by the damage deposit. We still have to pay a damage deposit too!


I like the idea of showing them it then cancelling it during the cooling off period. I might just alter it after showing them to take the accidental cover off as that would almost half the price!


I'm still a bit confused by the whole thing though. I can understand that we would be liable to accidental damage to his property (either by the damage deposit, or in this case by claiming on the accidental cover of the insurance) but surely he should have his own cover against fire and theft of his own stuff . :huh: Otherwise surely his stuff isn't covered when the flat is empty between tenants as it is at the moment.

G_M

" Plus if anything did go wrong and the tenants were expected to pay for it via their insurance then they're going to be in trouble"

If anything went wrong, the tenant would be expected to pay for it. Not the LL's business how. From the deposit? In cash? out of an insurance. Whatever.

It may be a breach if contract but no court would order an eviction on the basis of a breach like this so effectively unenforcable.

LankyMoneySaver

After all the time I spent sorting this out they didn't even ask to see the insurance when we went to the letting agency office to sign the contact so could have probably left off the accidental cover.

I've not got the contract to hand but I think it contradicted itself on who was responsible for the landlord's stuff in it anyway! Will dig out the relevant clauses out and put them on here.

Wondering if the whole thing was just to try and get us to take out insurance with the company they recommended in the letter that said we needed it that they sent after we passed the credit check, earning themselves some commission on the sale!

tbs624

If you check out what the OFT guidance on unfair terms in tenancy agreements says you’ll find this:

"compulsory insurance – we object in particular to terms requiring tenants to purchase specific insurance, or insurance provided by an insurer specified by the landlord or agent.

This may provide the landlord or agent with additional income by way of commission at the expense of the tenant having to pay higher premiums than on the open market. In such circumstances this is effectively a disguised addition to rent and, in the absence of market forces, the tenant will have no protection against unreasonable premium increases (see also our views below on compulsory contents insurance).

unnecessary insurance requirements - we consider that whether tenants wish to insure their own personal belongings is a matter for them and that it is unreasonable for the landlord to make this a contractual requirement.

Potentially unreasonable obligation
Unfair term
Insurance, this is not negotiable. The tenant will be required to take out our (ie: the agent's) insurance against accidental damage to the landlord's fixtures and fittings.
Way of revising term
The tenant is advised to take out insurance for the tenant's contents. "

[FONT=&quot]And, yes, a contract term can only be held to actually be unfair following a court determination but I agree with G_M on this one.
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