Letting Agent: Compulsory contents insurance?

all_change

Hi -

First post from a very long time lurker... today's exciting subject is:

"Can the letting agent insist that we have accidental cover for landlord's fixtures and fittings in our contents insurance? i.e. is it enforceable? "

Having rented for 10 years and being pretty savvy, I was surprised to see (for the first time) that the proposed tenancy was subject to the condition that tenants are "obliged" to have contents insurance that specifically covers accidental damage by tenants to the landlord's fixtures and fittings, i.e. effectively insuring what is already covered by a hefty deposit. We always have contents insurance for our own possessions.

Any wisdom on this subject greatly appreciated.

Andy_L

They could refuse to take you on as tenants if you don't have it. Like you I've never heard of it - how does the rent + the insurance compare with others?

all_change

They could perhaps refuse to take us on if we are awkward about it, and we're not prepared to risk losing the flat, but we are quite happy to state our position to them, once we know where we stand legally.

We're still waiting for paperwork before being able to establish how much a specialist contents policy might cost us.

olly300

If you are in England and Wales it falls under the OFT unfair terms in consumer contracts regulations for tenancy agreements. http://www.oft.gov.uk/shared_oft/reports/unfair_contract_terms/oft356.pdf It's also likely to be unfair in Scotland too as the regulations are based on a EU Directive.

You are not legally obliged to take out contents insurance for accidental damage to cover the landlord as this is what your deposit is for. The landlord should have their own insurance for their contents.

I suggest you contact Trading Standards and inform them of the LA who is doing this. http://www.tradingstandards.gov.uk/consumers/consumers.cfm

If you want to be screwed because you must take the flat then go and get the insurance. However expect the LA to think of other ways to rip you off during your tenancy, after your tenancy with your deposit and when you want to renew.

RabbitMad

I disagree with Olly. I think that such a term would not be unfair unless they insist you buy a particular policy from a particular company.

As you say you are insuring what is already covered by the deposit but you are going to want your deposit back, and what if the accidental damage you cause is for more than your deposit?

Having insurance such as this is a good idea for you and I don't think it will cost the earth; the legal liabilty section on most contents policies should cover accidental damage to a third party's property I would have thought (Mine did when I accidentally cycled in to the back of a parked car and caused several hundred pounds worth of damage).

lynzpower

Olly is completely correct on this point IMVHO.

Landlords must have buildings insurance. if they are letting the property furnished then it makes sense to have contents insurance too. only a week or so ago there was some LL who had decided to let out thier property without contents ins and the place was flooded. not the tenants problem.

If you are going to be a LL then you a) choose what F&F are there, and b) you insure them as such. there are specific policies around for this.

Additionally, when you claim off contents insurance ( well when I last claimed, it was some years ago) dont you have to prove when and where it was bought, what was paid for it, and that it is in fact YOURS?

I cant see most insurers offering this sort of policy, or at the least paying out.

Notlob

Surely, the deposit is used for issues at the end of the tenancy, not during. If you break something, you must pay for repair or replacement, which is the reason why tenants are wise to take out insurance.

IMHO if the tenancy agreement has a clause that tenants must insure LL possessions then you are contractually obliged to do so. I agree it would be unfair to dictate who you insure with.

Notlob

izzybusy23

all_change wrote: »

Hi -

First post from a very long time lurker... today's exciting subject is:

"Can the letting agent insist that we have accidental cover for landlord's fixtures and fittings in our contents insurance? i.e. is it enforceable? "

Having rented for 10 years and being pretty savvy, I was surprised to see (for the first time) that the proposed tenancy was subject to the condition that tenants are "obliged" to have contents insurance that specifically covers accidental damage by tenants to the landlord's fixtures and fittings, i.e. effectively insuring what is already covered by a hefty deposit. We always have contents insurance for our own possessions.

Any wisdom on this subject greatly appreciated.

I would assume that if you have contents insurance anyway it should cover any fixtures and fittings? Do you have accidential damage on your policy, new for old etc? If not, maybe wise to get that added.

At the end of the day I am renting and would always pay for any damage to landlords fixtures and fittings from my accidental cover from my own personal contents insurance. That feels only right to me.

Edited to say the current tenancy stated that we most show proof of having contents insurance with accidental cover, but they didn't actual ask us in the end.. I would assume the LL just has insurance for building itself?

all_change

Notlob wrote: »

IMHO if the tenancy agreement has a clause that tenants must insure LL possessions then you are contractually obliged to do so. I agree it would be unfair to dictate who you insure with.

Notlob

The obligation regarding insurance is set out in a separate document. It is not contained within the tenancy agreement document, but says that the tenancy is on the condition that the insurance is taken. Don't know if this makes a difference.

all_change

izzybusy23 wrote: »

I would assume that if you have contents insurance anyway it should cover any fixtures and fittings? Do you have accidential damage on your policy, new for old etc? If not, maybe wise to get that added.

Having spoken to my current contents insurer, the landlord's fixtures and fitting would not be covered under their policy, and I gather that this is standard for a normal contents insurance policy, i.e. having a standard contents insurance policy would not cover what is being required of us.

izzybusy23

all_change wrote: »

Having spoken to my current contents insurer, the landlord's fixtures and fitting would not be covered under their policy, and I gather that this is standard for a normal contents insurance policy, i.e. having a standard contents insurance policy would not cover what is being required of us.

Hmmm makes sense, but how would your insures know whats yours and what is your landlords possessions??

Are you renting fully furnished then? If unfurnished then I can't really see how the LL can expect any kind of insurance, unless they are referring to things like kitchen cupboards, bath fitments etc?