Student Tenancy - Buildings Insurance

gat67

The MSE website states that tenants do not need to take out buildings insurance as it’s the landlords responsibility to do so. So far as I’m aware, there is no legal obligation on a landlord to take out any buildings insurance (let alone buildings insurance appropriate to a tenancy); also, tenants can be liable under the tenancy agreement terms for damage they cause. My interest is that I’m being asked to act as guarantor for my son’s (joint and several) liabilities under his student tenancy. If the place burns down due to an act of my son or his housemates and the landlord has no (or inadequate) buildings insurance, who’s liable? Thanks in advance.

davidmcn

The tenants would be liable whether or not there is insurance. The only difference is whether it's the landlord pursuing the tenants directly, or the insurers recovering their costs after they've had to pay out. 

gat67

Thanks for the prompt response. One follow up point - there’s no contractual nexus between the tenants and the landlord’s insurer, so on what basis could the insurer seek to recover from the tenants?

dimbo61

Well it would be a very very stupid landlord to not have buildings and contents insurance especially when renting to a group of 18/19/20 year old students.
It is a requirement for all BTL mortgages and commercial loans that  adaquate insurance is taken out.
Landlords can now offer contents insurance for there tenants even students via ensleigh insurance if they want too.
However most insurance policies Exclude Criminal damage done by tenants.
So if your Son or one of the other tenants decides to burn the place down the Landlord may well want to sue both the tenants and the parent guarantors.
Students have No credit history so no point carrying out credit checks, Most students also have few assets so No point trying to sue them.
However Mum and Dad have jobs and houses.
This is why student landlords ask for both deposits and parent guarantors.
A good landlord will carry out a comprehensive written and video inventory so Everyone can see the condition of the property before the tenancy starts.
Landlord need to provide an EPC, EICR, PAT testing, Gas Safe Certificate, Right to Rent, How to Rent, Information about the deposit and prescribed information.
They should supply you with a copy of the tenancy agreement and guarantor form signed as a deed.

dimbo61

PS,
It would be a good idea for you to take out Contents insurance for your Son with an insurance provider.
Student properties are often the target of thieves.
So check the property has good locks, Alarm system, CCTV if possible and take lots of photos when he moves into the property.
He should highlight any issues with the property as soon as any problems are noticed and inform via email to the Landlord or Letting agents.

gat67

Thanks for taking the time to post such a lengthy response. You’ll appreciate that I’m less concerned about criminal damage than simple carelessness - as you allude to, we’re dealing with young, inexperienced adults and mistakes can be made. I have first hand knowledge of a kitchen fire caused by a tea towel being left too close to a lit gas ring.  My concern remains that a landlord may not carry adequate buildings insurance against insured / insurable risks and seek to recover the shortfall. Further, davidmcn appears to suggest that, even where buildings insurance is in place, the landlord’s insurer can seek to recover its losses from the students / guarantors.

anselld

It gets worse since you could also be jointly liable for a negligent act by one of the other students who you presumably have little or no knowledge of.
You could ask to see the insurance schedule to ..
  (a) make sure it is in place
  (b) make sure it includes accidental damage.
it almost certainly won't include malicious damage so there will need to be trust on that point at least.

davidmcn

gat67 said:

Thanks for the prompt response. One follow up point - there’s no contractual nexus between the tenants and the landlord’s insurer, so on what basis could the insurer seek to recover from the tenants?

By the principle of subrogation ie the insurer is entitled to step into the shoes of their insured in order to recover from the liable party. 

gat67

Thanks to all.