Rental Insurance Query

funkey_monkey

A relative has gifted their property to me. They have set up an agreement which we both signed that they will live in it for their lifetime and then it will transfer over to me.

Currently, I provide the building insurance for this property and undertake some maintenance work so my question is how do I define the tenancy agreement when filling in the online quotes?
There is no tenancy agreement in place - the detail is in the gift agreement which we both signed.
Can this be used as a valid tenancy agreement for the purposes of the quotes?


Thanks.

Linton

Why has the relative been so generous? If they are hoping to avoid tax it may well not work. Will they be paying rent to live in "your" house? If you are likely to move home at some time have you considered the higher Stamp Duty as a second home owner? What happens if the house has to be sold - eg you die/divorce/go bankrupt? Are the relatives out on the streeets?



Unless there are some special circumstances this deal could be bad for them and bad for you. And if there are special circumstances there may be better ways of arranging matters.

DanParks87

In terms of family renting property to other family members, I don't think it's too unusual to see a casual/verbal agreement in place rather than a formal tenancy agreement.

I think insurers would prefer you to have an agreement in place as it provides you with more protection and the insurers with greater confidence that you're taking risk management seriously.

If you do have a form of agreement in place (as you stated), then I would simply run some quotes and then speak to each insurer to see what they say. Some might accept it