Definition of sub-let by insurers?

anselld

Leasehold flat.

Freeholder's building insurance has a condition that premises cannot be "sub-let".

Lease is silent on anything to do with letting or sub-letting but has a clause preventing the leaseholder from any action which would render insurance void or increase the premium.

Would the leaseholder breach the lease terms by letting the flat?

dacouch

What's the exact wording?

anselld

Residential Occupancy Exclusions
It is a condition of this insurance that the residential portions of the Premises are not rented out or let for the purposes of any of the following occupancy types:
* Bed and Breakfast
* Care and Support
* DWP/DSS, Local Authority or Council support tenancies unless accepted by us
* Asylum Seekers

Sub-lets and Holiday Lets Exclusion
It is a condition of the insurance for Property Damage that the residential portions of the Premises are not and will not be
* sub-let
* rented out or let as holiday homes or holiday rentals

---

So on the one hand why would they go to such detail to the types of exclusion if they intend simply "no letting"?

On the other hand surely the leaseholder is a tenant of the freeholder so letting of any type would be "sub-letting" by the Leaseholder.

Or am I over-thinking what is written?

G_M

On the face of it it appears you as leaseholder cannot let the flat without breaching the insurance, which in turn would be a breach of the lease.

I suggest you post on the insurance board where there are insurance brokers....

franklee

Does the policy have a definitions section, have you looked up their definition of the terms sub-let and rent out?

anselld

franklee wrote: »

Does the policy have a definitions section, have you looked up their definition of the terms sub-let and rent out?

I don't currently have access to the full policy document, only the schedule.

anselld

G_M wrote: »

On the face of it it appears you as leaseholder cannot let the flat without breaching the insurance, which in turn would be a breach of the lease.

I suggest you post on the insurance board where there are insurance brokers....

Thanks G_M.

Reposted on Insurance.
https://forums.moneysavingexpert.com/discussion/5219634

silvercar

Looks like that a proper AST would mean you are not covered for property damage but the other parts of the insurance would be OK. That would explain why there are 2 paragraphs - so the first paragraph tells you what is not allowed as a condition of the insurance, the second tells you that they won't cover damage to the property if it is let.

boiler_man

The problem is that different insurance companies will have their own views / definition of sub letting. Best bet is to phone and ask them.

For people who have purchased a leasehold property and want to let out, most should view that this is not subletting, but you really should check that your insurer shares this opinion.

Alternatively, the full policy wording /definitions may be online and explain clearer.

franklee

boiler_man wrote: »

For people who have purchased a leasehold property and want to let out, most should view that this is not subletting,

Yes but in this case the wording used is "rented out or" e.g. " rented out or let as holiday homes or holiday rentals". Do they mean that they think renting out is a different thing to letting or is that just the same thing described twice?

For example I've no idea what the difference between renting out a holiday home is and a holiday let. I'd call a holiday let the normal holiday type thing and renting out the normal AST type thing, but if so why is renting out under the Holiday and sub-letting section? They seem to have holiday rentals as a different thing to holiday let.

boiler_man wrote: »

but you really should check that your insurer shares this opinion.

Alternatively, the full policy wording /definitions may be online and explain clearer.

anselld

franklee wrote: »

Yes but in this case the wording used is "rented out or" e.g. " rented out or let as holiday homes or holiday rentals". Do they mean that they think renting out is a different thing to letting or is that just the same thing described twice?

The wording is totally ambiguous, i.e. is it ...

(rented out) or (let as holiday homes or holiday rentals)

... or is it ...

(rented out or let) as (holiday homes or holiday rentals)