compulsory contents insurance for a tenant?

a_pedant

I am moving soon and have just received an email from the letting agent telling me that when I come to sign the paperwork I need to bring photo id (fair enough) proof of previous address (I've never had to do that before but ok) and proof that I have adequate home contents insurance. Can they actually force me to take out home contents insurance? I have my valuable items covered on my bank account but no other insurance, nor do I much want it.

All through the documents they drop a lot of hints that they recommend insurance through the company that performs the referencing and credit checks for them, I suspect they get a finder's fee. Am I entitled to know if they do get a kickback and can they actually insist that I insure my own property (what they are demanding is not insurance against damaging the LLs property but cover for my own goods)?

princeofpounds

Can they actually force me to take out home contents insurance? I have my valuable items covered on my bank account but no other insurance, nor do I much want it.

They cannot force you to get contents insurance, but they can refuse to sign a contract with you on any ground they like (except maybe racial/sexual discrimination I think - can't remember if that came into law).

Am I entitled to know if they do get a kickback

No. But the answer is yes of course they do.

The standard advice is to take out contents insurance via a distance method, show it to them, then use the cooling off period to cancel.

Your insurance via your bank may suffice anyway.

MartynK

I had all that run around when I took out my tenancy this year.

For me, and this might be entirely different for you, I had 30 days in which to cancel for free, I think by law you have 14 days cooling off period as well, although best check on that.

A few days later I then checked with the various compare websites and directly and realised that letting agents company was charging around 2-5 times the amount all the big companies charge.
I ended up going with Co-op which was nice and cheap, when I rang to cancel the very bored bloke said to me
"I wont ask why you are cancelling, I assume you've got other quotes much cheaper, which we can't match"

Jordo

You can get home contents for £4-5 a month, done online. Show them the proof, then cancel straight after if needs be.

satchef1

My LA's chosen insurance partner really tried to play hard ball. I already had quotes from elsewhere, but they insisted they weren't valid as renters need specialist 'Tenants Liability and Contents Insurance', which is only provided by themselves and a few other companies. This insurance was £50/year more expensive than everyone else's, charged extra for just about everything and had scarily low levels of cover as standard. They insisted that I had to have one of these policies or I could find myself liable for huge sums of money to the LA, LL or I could find myself evicted for not having sufficient insurance cover. Key cover was an extra £17/year, cover for contents in the garden was an extra £45/year, cover for my bike was £50/year and they insisted that I had to have 'Emergency Cover' at £6/month as it was in my tenancy agreement that I need insurance to cover this.

Phoned the LA up to discuss the phone call and they were appalled. I've since gone with M&S, who were much cheaper, provided adequate levels of cover, didn't charge extra for key cover, contents in the garden or other things that should be standard and didn't try to play hard ball with cover that I don't need. Also bagged myself £30 of free M&S vouchers.

It seems renters are a prime target at the moment. Everyone wants to exploit us for easy money

Kynthia

It's strongly recommended that tenants have contents insurance. As you said they aren't asking you to insure the landlord's contents and they are happy for you to get cover yourself without using their "recommended" insurer so it doesn't sound like a con. So I'd guess its a strong recommendation and a reminder that your items aren't covered by the landlord to prevent you hassling them if something of yours gets damaged later on.

So why don't you want to insure your property for a few pounds a month? It doesn't even have to be a disaster caused by you or your landlord's property for your items to be damaged and even non-valuables can be expensive to replace in volume. What if the flat above has a leak/flood and the water damages your furniture and electrical items? What if next door catches fire and all your clothes and furnishings are ruined with smoke damage? Unless someone has been negligent their insurance does not cover damage to your property and you'd be unlikely to successfully sue them.

Road_Hog

princeofpounds wrote: »

The standard advice is to take out contents insurance via a distance method, show it to them, then use the cooling off period to cancel.

You may then be in breach of contract.

marleyboy

Kynthia wrote: »

It's strongly recommended that tenants have contents insurance. As you said they aren't asking you to insure the landlord's contents and they are happy for you to get cover yourself without using their "recommended" insurer so it doesn't sound like a con. So I'd guess its a strong recommendation and a reminder that your items aren't covered by the landlord to prevent you hassling them if something of yours gets damaged later on.

So why don't you want to insure your property for a few pounds a month? It doesn't even have to be a disaster caused by you or your landlord's property for your items to be damaged and even non-valuables can be expensive to replace in volume. What if the flat above has a leak/flood and the water damages your furniture and electrical items? What if next door catches fire and all your clothes and furnishings are ruined with smoke damage? Unless someone has been negligent their insurance does not cover damage to your property and you'd be unlikely to successfully sue them.

Spoken like a true insurance salesman with the same old scaremongering tactics.

Plenty of "What ifs?" which can be answered with "that's the risk I will take".

Building_Surveyor

For the sake of a few quid a month, get the minimum cover if need be. Insurance is based on what ifs to the above poster.

Having worked in housing for many years and currently working for a company that's owns 35,000 properties many tenants when there's been a leak, fire or whatever ask for the landlord to replace/compensate for damaged items where there has been no negligence. And the standard reply is 'do you have contents insurance' ...

Insurance is not assurance so there's no certainty that you will ever need the policy. But you could end up kicking yourself if you ever needed it and didn't have it... And no I don't work in insurance.

paddyrg

Our old parasitic agent used to force use of one insurance broker. First year we swallowed it, second year I called the same broker for the same policy direct (and much cheaper) and when I was directed to take the marked-up policy through the agent again I just showed them the policy - they hadn't a leg to stand on.

The builder that agent used actually told me he had to give a 10% kickback to the agent for any jobs. Dirty industry.

Katekoom

I've had this clause in tenancy agreements twice before. It's not unheard of. Just a bit of a pain!