Landlord Insurance asks for tenant benefits breakdown is this allowed/legal?

Starfish42

I rent via an agent from a private landlord. I also receive Welfare Benefits. This year upon receiving the usual Landlord's Insurance Renewal forms, my landlord was asked to include a detailed breakdown of their tenants benefits. So I get a phone call from an apologetic agent asking for this information. So happens my Assured Shorthold Tenancy Agreement is also backed by a Financial Guarantor. So the tenancy is dependent not just on my, but my guarantor's income.

According to the agent this info has never been asked for before,
Is an insurance company allowed to ask for this? Has anyone else come across this? whether tenant or landlord? Is it in breach of privacy or data protection...?

Hump

Sounds about right, your landlord has the freedom to choose insurer and insurers are free to base their decision on risk and the resultant premium on any factor they choose

silvercar

If you are paying the rent direct to the landlord, I don't see that you are under any obligation to inform your landlord of exactly what benefits you are receiving.

The landlord should inform the insurer that the tenant is in receipt of benefit but the exact form is not known.

Interestingly, directlineforbusiness used to specify that their insurance would not take on cases where the tenant was claiming benefits, then that got watered down with the phrase "at the start of the tenancy" added. Then it was changed to tenants needed to be working or retired at the start of the tenancy.

I assume that being in receipt of benefits would rule out a lot of tenants by the time you include child benefit and working tax credit.

Starfish42

I did a quick check online earlier and insurers vary as to whether or not they will insure benefit claimants. This can often mean someone in a low-paid job receiving Housing Benefit round my way. Not just benefit as sole income source. This is different to let-to-buy mortgages where mortgage lender specifies no benefit claimant tenants as a condition.

stator

They can't force you to comply but if you don't they may decide to evict you at the end of the AST.

whalster

You do not have to tell your landlord this information.

I am asked this question by my insurance brokers every year ,what percentag of our tenants are on benefits .
My answer is always the same how would I know ? Obviously i know the ones who are paid direct but I have no idea the ones who are not and I am not asking them .
I have also based a percentage on what the initial checks I have done when moving in but once again this is not accurate as some have been in years on end .

This is a spurious question by insurance companies a little like the one asking what percentage of tenants are 'proffesional' if I took this at its literal meaning there would be swathes of white collar workers who technically are not proffesional .

Tell your landlord or if it's an agent to tell yes tell the insurance company to take a view and of they won't then get a different one .

rpc

Personally, I'd tell them it's none of their business. But then you expect to be given notice at the end of the fixed term.

You could suggest the landlord finds another insurer that isn't so intrusive.

Bettie

My Landlords insurance wanted to know if my tenant was on benefits. I said yes, they told me to notify them if that changes. They didn't ask what benefits.
Initially I struggled to get insurance on my house tenanted with a single parent on benefits.

silvercar

The phrase "on benefits" doesn't sound clear, it could mean:

a) the tenant is relying on benefits ie it is their only or main income
b) the tenant is not working
c) the tenant works but receives some extra income via the benefit system:
(1) this could be due to low income in the form of housing benefit/ working tax credits/ etc
(2) due to a universal benefit eg widows benefit/ state pension
d) the tenant works but claims child benefit as their only benefit.

Some people may interpret some of those categories as not being "on benefit", but it doesn't sound a clear enough phrase for an insurer to rely on its meaning.

theartfullodger

You could ask agent/landlord for a copy of the landlord's insurance policy that requires this: As it may be they are just nosey & it is not required.

Any landlord is at liberty to find another insurer who has more relaxed criteria if "benefits" really are an issue: Might be more expensive. Landlords don't have to be mean penny-pinching Scrooges.., (Aye, laddie, but the temptation to screw another 3p from each tenant is so tempting eh>?)

On benefits ?? well, I'm in receipt of 6 benefits: Free prescriptions, winter fuel allowance, free eye tests, £10 xmas bonus, 'bus pass, state pension....

MOST families are on benefits (Child benefit, tax credits, pensions etc..). MOST families get more in benefits than they pay in taxes so a penny-pinching landlord refusing benefit claimants really is restricting his market.

Cheers!

Mrs_pbradley936

We have just changed our insurance and have had to say that we will not let to students, asylum seekers or anyone not employed. If we do we have to pay an additional premium. Perhaps this has just become an important issue for insurance companies.