Mandatory tenants contents insurance

mry1234

I'm about to sign a lease on a property as the tenant. In reading through the agreement, I came across a clause saying that I "must show proof of insurance protecting against accident damage caused by the Tenant to the property and its contents and any liability the Tenant may incur as the occupier."

I'm not all that fussed, I was thinking of getting contents insurance anyway, but I've been renting for over 10 years and never encountered such a clause before. I would like to know:
Can I really be required to insure my own stuff? Surely this is up to me?
It is just standard contents insurance that is being asked for, the kind that usually costs about £50, not something more exotic?

tacpot12

You are being asked to insure against accidental damage to the property, as well as to your contents. And against any claims due to you occupying the property. This second part is a form of public liability insurance. The first part would cover the landlord if, for example, you break windows or sanitaryware. It means the landlord doesn't need accidental damage cover on the property.

mry1234

Can they require me to do this? I've google it a bit and the OFT states that:

compulsory insurance – we object in particular to terms requiring tenants to purchase specific insurance, or insurance provided by an insurer specified by the landlord or agent.

This may provide the landlord or agent with additional income by way of commission at the expense of the tenant having to pay higher premiums than on the open market. In such circumstances this is effectively a disguised addition to rent and, in the absence of market forces, the tenant will have no protection against unreasonable premium increases (see also our views below on compulsory contents insurance).

and

unnecessary insurance requirements - we consider that whether
tenants wish to insure their own personal belongings is a matter for
them and that it is unreasonable for the landlord to make this a
contractual requirement.

I have no idea what enforceable power the OFT actually has.

kinger101

The OFT no longer exists. In any case, I don't think there is anything in there which indicates that it would be an unreasonable term to mandate you have some form of insurance against damage to the LL's property. They just don't want kickbacks to the agent.

The insurance isn't expensive and it's a wise precaution to have it.

If you don't like it, ask them to remove the clause from the contract. I think they'll tell you to go away and that letting agent may even blacklist you.

davidmcn

mry1234 wrote: »

Can they require me to do this? I've google it a bit and the OFT states that:

compulsory insurance – we object in particular to terms requiring tenants to purchase specific insurance, or insurance provided by an insurer specified by the landlord or agent.

Perhaps they will sell you insurance if you appear to be struggling, but they don't appear to be insisting that you buy it via them.

unnecessary insurance requirements - we consider that whether tenants wish to insure their own personal belongings is a matter for them and that it is unreasonable for the landlord to make this a contractual requirement.

The clause you've quoted doesn't appear to be about your belongings, just your liability to the landlords' property. I suspect this is included as standard if you get a tenants' contents policy but best to check.

theartfullodger

kinger101 wrote: »

The OFT no longer exists. In any case, I don't think there is anything in there which indicates that it would be an unreasonable term to mandate you have some form of insurance against damage to the LL's property. The.................

Errr...

It's now the CMA: OFT356 is still operational - see
https://www.gov.uk/government/publications/unfair-terms-in-tenancy-agreements--2
- and yes the issue is covered, page 112 and other areas...

Compulsory insurance

Unfair term

The tenant agrees to insure the permitted occupiers and their invitees against personal injury and against damage to or loss of personal effect and other belongings that might be on the property.

Way of revising term

The landlord's insurance does not cover the tenant's possessions. The tenant is strongly advised to insure his own possessions with a reputable insurer..

This guidance was originally published by the Office of Fair Trading (OFT) and has been adopted by the CMA Board. The original text has been retained unamended,...........

...

You clearly won't be allowed the tenancy without showing proof of such an insurance policy: So, get one on-line (easy enough..), so you are covered by the 14-day cancellation period... Show proof to agent, move it to property, cancel insurance deal & get your money back.

That it may be wise for a tenant to have such cover is interesting but irrelevant to the matter...

Cheers all!

Guest101

mry1234 wrote: »

I'm about to sign a lease on a property as the tenant. In reading through the agreement, I came across a clause saying that I "must show proof of insurance protecting against accident damage caused by the Tenant to the property and its contents and any liability the Tenant may incur as the occupier."

I'm not all that fussed, I was thinking of getting contents insurance anyway, but I've been renting for over 10 years and never encountered such a clause before. I would like to know:
Can I really be required to insure my own stuff? Surely this is up to me?
It is just standard contents insurance that is being asked for, the kind that usually costs about £50, not something more exotic?

its totally irrelevant as you cannot be forced to claim on your insurance.


Buy it 1 day before signing, cancel in the cooling off period

G_M

Look around for a policy. Ignore the price/premium. Check the cancellation policy: is there an admin charge? how much?

* Buy it online and show the landlord/agent
* get your tenancy agreed/signed
* cancel the insurance (14 days) and get refund

Sort out your own contents policy if you wish.

PasturesNew

I had this once, I just did it. Endsleigh did a policy that covered my stuff and the LL's stuff (it was furnished). £70 in 2007 (from memory).
Annoying, but it was done.

It also included a little bit that said that if there were a break-in the insurance would replace locks/etc and get it secure soonest, rather than having to wait/rely on the LL getting their finger out.