Bit confused with Tenants Liability Insurance vs Contents Insurance

FlowerBomber

Hello,

So my boyfriend and I are renting our first flat together. We're finally moving away from !!!!!! student living and into a nice place. We're currently in the process of reference checks before we sign our tenancy agreement. The letting agency has said:

In taking this tenancy, you must have adequate
insurance cover (min cover £5000) that will pay for
any accidental damage to the landlord!!!8217;s furniture,
fixtures and fittings in the property. This is known
as Tenants Liability Insurance. You will be
contacted by us regarding Tenants Liability
Insurance, and provided you have given consent,
our recommended insurance company will contact
you.
They will be able to talk to you about their contents
insurance, which includes Tenant Liability
Insurance.
You will be required to take out this type of cover
and proof of your Tenant Liability Insurance policy
must be provided to us prior to the
commencement of tenancy.

I've never heard of this before and I've rented a couple of properties prior to this (albeit crappy student flats). I was planning on taking out contents insurance for us anyway but am unsure now what this is and how/if it would differ from our own contents insurance? Do we need one or the other or both? Surely the landlord should have insurance on fixtures and fittings that can't be removed anyway? Like kitchen units, carpets, and such.

Just wondering if someone can give me an "explain it like I'm 5" tbh.

Sorry in advance for any stupid questions/ignorance.

Thank you.

EDIT: I forgot to mention the flat is unfurnished but has a dishwasher, a washing machine, a fridge, and an oven.

stator

Tenants Liability is an 'optional extra' that can be provided by some Home Contents insurance policies. You might be able to buy a separate Tenants Liability insurance policy but I'm betting you can find one that is included in general Home Contents. Accidental damage is also an optional extra, so you can't assume that all Home Contents insurance policies will include these two things

Endsleigh are a good insurer for renters, they were original set up for students so they are usually on top of all a tenants requirements for insurance, whereas some of the big names only really care about home owners.

I'm afraid it will be boring for you but you've got to read the policy terms and conditions to make sure the insurance policy you take out covers the Landlords possessions and also includes accidental damage. As long as you can prove you've got cover for a minimum of the £5,000 they want, then the rental agency will have to accept it. They will try to get you to take out a policy through them, because they earn commission. But stick to your guns and shop around and find your own.

camptownraces

Contents insurance is to insure your own belongings against whatever risks you choose (fire, flood, theft etc). The landlord cannot insure your belongings.

The other policy will be what is called third party liability insurance - in this instance your liability to your landlord for any damage caused to the landlord's belongings, or possibly even to the structure of the building - say you let the bath overflow and it brings down the ceiling of the room below. But it might cover more than that - an accident sustained by a visitor, for instance.

Read the policies carefully and make sure they are what you need.

stator

Endsleigh seem to include it at standard:


With endsleigh you'd need to make sure your contents insurance is covered up to £17,000 as the Tenants Liability is limited to 30%, so 30% of £17,000 is abuot £5000

FlowerBomber

Thank you so much! This has clarified it in my mind. They state, however, that they want proof of the insurance prior to the tenancy but surely it would be unwise for us to get contents insurance on an unfurnished flat before we've moved in and let alone purchased any furniture yet?

Fosterdog

It takes just a few minutes to purchase insurance online, get the quote in place and ready before signing and then do them both at the same time, sign the agreement and take out insurance and show the proof to the letting agent straight away then forward them a copy of the policy document when that comes through.

I can also recommend Endsleigh, we had contents insurance with them while renting (although didn't need liability insurance) they were just under £100 for the year. We had to make a claim for accidents damage to a TV, they were quick and efficient at arranging an inspection and when deemed unrepairable had a brand new, newer and improved model of the same TV delivered to us is around 4 days. Excess was only £50 and premium only increased by £10 for the year when it came to renewal.

davidmcn

Also bear in mind you can cancel insurance during the cooling-off period (possibly after you've waved the policy at the agency...)

stator

FlowerBomber wrote: »

Thank you so much! This has clarified it in my mind. They state, however, that they want proof of the insurance prior to the tenancy but surely it would be unwise for us to get contents insurance on an unfurnished flat before we've moved in and let alone purchased any furniture yet?

If they insist on seeing it before you move in, then you'll need to take it out. If things go wrong you can cancel the insurance but you might want to check their refund policy first so you can arrange the dates accordingly.

Slithery

davidmcn wrote: »

Also bear in mind you can cancel insurance during the cooling-off period (possibly after you've waved the policy at the agency...)

Indeed.


The LL already has security over the tenants liabilities, that's what the deposit is for (plus the legal right to claim any excess).


I've seen a lot more agencies start to do this recently, usually by offering a lower deposit if you show them proof of insurance, then putting you in touch with their own broker with expensive policies that gives them a big kick-back.


I'm pretty sure that this clause in your tenancy agreement would be unenforceable if it ever went to court - I'd be interested in hearing other peoples views on this.


Anyway, as davidmcn points out just find a policy that doesn't charge you for cancelling in the 14 day cooling-off period, show it to the agents, and then cancel it. Unless you want insurance in which case I'd stay clear of the agencies recommended broker.

G_M

As above. The agent wants to force this on you so that they can earn commission on their preferred insurer.


If you don't want to take out insurance for the LL's possessions (why should you, they have your deposit?), or prefer to find your own, then shop around and show them a valid insurance certificate.


Then once they've granted you the tenancy you can always cancel it, though check in advnce for any cancellation admin fee.

jo_yp

We're required to take out tenant's liability insurance by our new LA (in addition to a whopping £492 admin fee! Thought these were being made illegal..). I've read through advice on the forum about taking out insurance and then cancelling in the cooling off period, but my question is: if this is written in the tenancy agreement, is there any repercussion for cancelling and not having insurance in place, i.e. being in breach of our contract somehow? Could this come back to haunt us later down the line if there did end up being some accidental damage to the property that exceeds the value of our deposit? Thanks.