Letting Agents insist I pay £13pcm to cover landlord fixtures

JL0900

Hi everyone, my questions relate to me being a tenant and having to pay for Landlords insurance.

A major letting agency took a £500 deposit from me and subsequently instructed me to purchase contents insurance that covers the Landords fixtures and fittings, they have given it a special type of name 'Landlord contents cover'.

They provide 1 company as the supplier which is £13pcm and covers up to £20k only so appears to be needed in addition to my own contents cover.

I've googled this insurance and have been on the comparison websites to see if I can get a better deal but it doesn't seem to exist.

I was told that if I don't pay it, I can't have the property and they will not refund my £500 deposit. I like the property so don't want to pull out but it feels unfair.

1. Has anyone else paid this as it's coming from a large letting agent?
2. Does anyone know what this insurance is called so I can search for it?
3. Is it a fair demand? I've never had to pay before.

Many thanks

dimbo61

Maybe pay the first month's payment then cancel once your in the property and you have started the tenancy.

comeandgo

Have you checked Companies House to see if the insurance company and the letting agency are linked I.e common directors? I always thought that you can only insure what you own.

G_M

Is there a 14 day cooling off period? Any admin fee for cancelling within 14 days?


Take out the policy, show it to the agent, get your tenancy agreement siged, then cancel the policy.


Once you have a valid signed TA you have a binding contract ad they have to give you the keys (or cover your hotel bill till you find alternative accommodation.....)

mimiduck

Is this leaders by any chance? I know when I moved in their t&C's mention insurance in mandatory (however as far as I checked this was contents insurance)

JL0900

Amazing replies, thank you all.

Just looked further at the insurance quote and it is actually £16.50 because they charge £1.80 for direct debit plus a premium tax, this is not good.

I have found the policy T&Cs and will go through them in the morning to determine what is different to my standard contents insurance and in particular the cancellation clauses.

I wonder if the agency is starting to feel the pinch with the new rulings regarding letting agency fees coming into force in June and finding more surreptitious ways to raise money.

I've asked for an advance blank copy of the tenancy contract to see what T&C's cover this and the implications of cancelling. I await it's arrival.

It's not Leaders (unsure if I can name the agency here?) but I always have contents insurance, 3 times as much cover as the letting agents prefered policy permits and for 40% of the price so this feels like they're taking advantage of the tenant... namely me!

I will definitely check out the companies at companies house and maybe FCA for guidance.
Thank you.

jonnygee2

purchase contents insurance that covers the Landords fixtures and fittings, they have given it a special type of name 'Landlord contents cover'.

They provide 1 company as the supplier which is £13pcm

This is not legal. There are very strict rules about how financial products like insurance can be sold, and unsuprisingly, threatening to withold someone's deposit unless they buy a completely unsuitable insurance policy is not within those rules.

I would keep written evidence of all of this, buy the insurance (because you have to), get the flat, and then:

1) Try to leave the insurance contract
2) Complain to the estate agent and insurance company about insurance misselling, ask for compensation and eventually complain to FOS.

System

You are not obliged to use the agents preferred insurance company. There are other companies that specialise in tenant insurances and many offer tenant liability alongside the contents insurance. I have in the past used Homelet and actually found them quite reasonable premium wise.

JL0900

I've spoken with my existing insurers and not only does that insurance cover all my contents (new for old, accidental damage etc), it covers 50% more than the amount of tenants liability that the Letting Agents insurance company was offering. So I no longer need to pay the letting agents insurers £196!

Your feedback and advice helped me realise that I wasn't being difficult but the demand should be challenged.

Annastin

Hi JL,

I am in similar situation. How did you get on, were the agents ok with you having your own insurance?

Thanks.

JL0900 wrote: »

I've spoken with my existing insurers and not only does that insurance cover all my contents (new for old, accidental damage etc), it covers 50% more than the amount of tenants liability that the Letting Agents insurance company was offering. So I no longer need to pay the letting agents insurers £196!

Your feedback and advice helped me realise that I wasn't being difficult but the demand should be challenged.

System

Annastin wrote: »

Hi JL,

I am in similar situation. How did you get on, were the agents ok with you having your own insurance?

Thanks.

An agent/LL can no longer make insurance a condition of a tenancy. This came in to effect with the new legislation on 1st June, if you moved in prior to this date then that change comes in effect as of 31st May 2020 providing the clause is in the contract