Can tenant be forced to take out contents insurance?

waterwatereverywhere

Hi,

My brother has just rented a small house and the agents are insisting that he take out an insurance policy with letsure which seems to be for covering accidental damage to the LANDLORD'S contents, fixtures and fittings and buildings.

Pls does anyone know if this is normal? Surely it is for the landlord to insure their own buildings, contents and fixtures etc? The agent is apparently saying they must take out and pay for this letsure policy or provide evidence or another suitable one.

My brother can't afford insurance for his own belongings (which are not many and which are not very valuable) so wonders why he should have to pay to insure the landlord's contents.

Many thx in advance for any advice on this.

<sebb>

I'm hearing about this more and more from Letting Agents and it's very sneaky IMO. Trading Standards consider this to be an unfair term in rental contracts, but unless it's taken to court no one really knows if it's an enforceable term.

The problem is, if your brother doesn't agree to it, then the LA may not grant the tenancy at all, and there probably isn't alot you can do about that.

Not that I'm recommending this, but insurance contracts have a cancellation period, and there's no way the LA can keep track of whether your brother has kept the policy, and once he's in the flat, not much they can do about it as they are unlikely to get a possession order for such a breach of the contract.

BitterAndTwisted

Accidental damage caused to the landlord's fixtures by the tenant is the tenant's responsibility to pay for. Your brother should arrange for contents insurance online, take the proof into the agent's and then cancel it during the cooling-off period if he can't afford it. He must accept that should he cause any accidental damage the cost will come out of his deposit.

I expect this letsure nonsense is driven by the agents earning a commission on it.

The landlord should have separate landlord's buildings insurance.

roses

You can't insure something that doesn't belong to you. However if your brother damages the landlords furniture then of course he should pay for it....

diable

Tell the letting agent the insurance is the deposit and ask them for any relevant safety certificates and confirmation of buildings insurance and the agreement from the mortgage company that the place can be let out.

G_M

1) If the policy is in the tenants name, it cannot cover contents belonging to another (ie the landlord).
2) So is the policy to to be in the LL's name, with the tenant paying the premium? Seems harsh, and of course then the tenant's belongings are not covered.
3) If the tenant refuses, the LL (or agent) may refuse to let the property, so the tenant has little choice.
4) Any insurnace policy can be cancelled within 14 days of being taken out, provided no claim has been made.
5) So - tenant takes out policy (in own name), shows it to LL/agent, signs contract and moves in to property. Tenant then cancels policy and gets refund.
6) Tenant then makes own decision as to whether ornot to insure his own belongings.
7) If LL/agent complains, tenant ignores since this (apparant) breach of contract would not be enough for a court to agree to evict, or enforce. LL /agent can do nothing, except refuse to renew tenancy when fixed term runs out (6 or 12 months later).

pippa80

About 5 years ago we rented a flat and the LAs made us get contents insurance. They were incredibly dodgy in all sorts of ways, but unfortunately had a monopoly on the flats in the town we were living in.

I'm sure if I'd been on this forum then we wouldn't have been screwed over nearly so much!

<sebb>

Actually there are special tenants policies out there that do cover damage to the Landlords contents - Endsleigh do this. It's now very common in London for agencies to force these policies on tenants.

Most people I know take them out, show the policy to the agent, cancel it and get their own insurance later - the agents never check up. Although I have one friend who actually found one policy that wasn't much more expensive and thought it was worth the extra to protect his deposit.

Although I do know of one agent that charges a £25 administration fee if you don't take out the policy through their broker!

Meatballs

roses wrote: »

You can't insure something that doesn't belong to you. However if your brother damages the landlords furniture then of course he should pay for it....

Not quite accurate there's plenty of third party insurance on the market for different products.

theartfullodger

No: Can't be forced.

However, if getting proof of such insurance is the only way to get the property,sign up on-line with an insurance company, print policy docs, take round to agency, give copy, say good-bye,,,

Cancel policy... (Distance selling regulations) no cost involved... (within 7 days, I think, of taking out policy..)

Move in...


See why can't be forced...

http://www.oft.gov.uk/OFTwork/publications/publication-categories/guidance/unfair-terms-consumer/oft356

P48...

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

Cheers!

Artful (LL since 2000)

PS Chances are the bent agent and/or LL is after a backhander from the bent insurance company... In fact, get bro. to move in then write (yes, write, keep copy) enquiring what commission agent receives from Letsure .. £5 to your nominated charity if they ain't taking a back-hander.... b***ards

See letsure's website - gives you a hint as to who they think they look after...
http://www.letsure.co.uk/

PPS Mind you, usually worth insuring your own property..

PPPS Chances are, assuming agent/LL is that bent, he'll have "arranged" elect/gas accounts so he gets a back-hander also.Encourage bro. to move to another supplier (he's entitled to...!!!!). If it is "Utility Warehouse" you've struck a right minger....

PPPPS So, we've established the agent os bent: Check absolutely everything else they do and don't trust them further than you can throw them...

chris_m

<sebb> wrote: »

Although I do know of one agent that charges a £25 administration fee if you don't take out the policy through their broker!

Surely that can't be legal?