Tenant Insurance

InsideInsurance

They aren't saying it has to be bought through the estate agents, just that it must be bought and the estate agent "helpfully" provides the contact for a provider

macman

I do not think that such a clause is legally enforceable.

InsideInsurance

On what grounds wouldnt it be?

macman

Because it's clearly unfair and restrictive. In no way does the tenant not having contents insurance impact upon the LL.
It's an unfurnished property, the tenant would have every right to leave it unfurnished if they so wished, or furnish it with worthless junk. Why would they then need contents insurance?
This is an agent's scam, pure and simple.

InsideInsurance

Because evidently the deposit does not cover the maximum liability a tenant could have and insurance to cover tenant liability is therefore a reasonable request to cover at least a good proportion of the gap

macman

It's a unfurnished flat, any damage done by the tenant to the landlord's fixtures and fitting should be covered by the LL's buildings insurance.

InsideInsurance

If the landlord has insurance, again their is no legal requirement for them to do so.

macman

No, there isn't, but if they have a mortgage against the property, the mortgage issuer will insist on building cover.
But if the LL chooses not to insure their own property, what has that got to do with requiring the tenant to take out contents insurance? It won't give any cover to their own property whatsoever.

jjlandlord

InsideInsurance wrote: »

If the landlord has insurance, again their is no legal requirement for them to do so.

If property is mortgaged, it would most likely be a contractual obligation of the mortgage.

Reading through the OFT recommendations:

Forcing the tenant to insure his own possessions is likely to be an unfair term, since it is none of the landlord's business.

Forcing the the tenant to take out insurance for something which is not their responsibility or beyond their control is also likely to be an unfair term. E.g. building insurance.

InsideInsurance

As always from governmental advice..... it is likely to be an unfair term.... not a definitive statement that it is an unfair term.

Forcing the tenant to have liability insurance would be in their control and would be the landlords business. It is just that the liability cover comes bundled in with contents insurance - probably be the same price or more expensive if it was a standalone product