Tenant take out building insurance rather than get landlord insurance

paulbrannan

Hi,
I have my family members moving into a property I own. I previously had contents/ buildings insurance and want to make sure the  buildings is protected once they move in. I looked at landlords insurance but for one it's very expensive, and also covers a load of things I don't need with it being a trusted family member. I was thinking of getting buildings insurance, paid for by me, but in his name. If in the event, I did have to use the policy, is this likely to cause any issues?

Thanks

jbainbridge

I imagine it might cause some problems .. the primary one being that it wouldn't be your policy. I think you'd be mad to do it that way.

davidmcn

You couldn't "use the policy" because it wouldn't be your policy. And your family couldn't either because repairing the property isn't their responsibility (unless you're setting up an odd tenancy where they are responsible for all repairs). 

Hasbeen

paulbrannan said:

Hi,
I have my family members moving into a property I own. I previously had contents/ buildings insurance and want to make sure the  buildings is protected once they move in. I looked at landlords insurance but for one it's very expensive, and also covers a load of things I don't need with it being a trusted family member. I was thinking of getting buildings insurance, paid for by me, but in his name. If in the event, I did have to use the policy, is this likely to cause any issues?

Thanks

Not a great decision on two points.
Letting to "trusted family" members. And trying to put their name on a policy for your property.

Have you tried any of the cashback sites re insurance?  Landlord Insurance Cashback & Voucher Codes | Quidco

ElizabethRose

Insurance fraud as your relatives don't own the property so can't insure it in their name for buildings. You also can't get a regular policy in your name as you don't live there. You need to get a landlords policy otherwise if you need to claim you will find yourself uninsured and possibly marked for Insurance fraud which cause a lot more issues going forward. 

paulbrannan

ElizabethRose said:

Insurance fraud as your relatives don't own the property so can't insure it in their name for buildings. You also can't get a regular policy in your name as you don't live there. You need to get a landlords policy otherwise if you need to claim you will find yourself uninsured and possibly marked for Insurance fraud which cause a lot more issues going forward. 

So can you only get buildings insurance for a property you own?

paulbrannan

Hasbeen said:

paulbrannan said:

Hi,
I have my family members moving into a property I own. I previously had contents/ buildings insurance and want to make sure the  buildings is protected once they move in. I looked at landlords insurance but for one it's very expensive, and also covers a load of things I don't need with it being a trusted family member. I was thinking of getting buildings insurance, paid for by me, but in his name. If in the event, I did have to use the policy, is this likely to cause any issues?

Thanks

Not a great decision on two points.
Letting to "trusted family" members. And trying to put their name on a policy for your property.

Have you tried any of the cashback sites re insurance?  Landlord Insurance Cashback & Voucher Codes | Quidco

Not yet. That would be my next port of call after eliminating all other possibilities

davidmcn

paulbrannan said:

ElizabethRose said:

Insurance fraud as your relatives don't own the property so can't insure it in their name for buildings. You also can't get a regular policy in your name as you don't live there. You need to get a landlords policy otherwise if you need to claim you will find yourself uninsured and possibly marked for Insurance fraud which cause a lot more issues going forward. 

So can you only get buildings insurance for a property you own?

Only the party legally responsible for rebuilding the building can get insurance. Which in practice is going to be the landlord.

All types of insurance require you to have an "insurable interest" ie a loss which you would suffer without the insurance.

Try LV, if you don't already have a quote from them - I found them cheaper for this sort of situation than the standard landlord policies. 

theartfullodger

paulbrannan said:

Hi,
I have my family members moving into a property I own. ......

Two points...

a) If there's a mortgage (or a normal Buy2let insurance policy) both will almost certainly exclude renting to relatives.  Don't do it!  When mortgage lender finds out you'll be put on the "Hunter" system and find getting another mortgage or other loan either impossible or very difficult/expensive..

https://www.theguardian.com/money/2008/nov/15/national-hunter-credit-agency

b) Never rent to friends or family: Best way to ruin a relationship.

[Deleted User]

paulbrannan said:

Hi,
I have my family members moving into a property I own. I previously had contents/ buildings insurance and want to make sure the  buildings is protected once they move in. I looked at landlords insurance but for one it's very expensive, and also covers a load of things I don't need with it being a trusted family member. I was thinking of getting buildings insurance, paid for by me, but in his name. If in the event, I did have to use the policy, is this likely to cause any issues?

Thanks

Will you be letting the property to your family member or will your family member be living there for free?  It makes a difference as to which type of insurance is appropriate and no you can't put the policy in someone else's name if you expect to policy to pay out.

paulbrannan

Lover_of_Lycra said:

paulbrannan said:

Hi,
I have my family members moving into a property I own. I previously had contents/ buildings insurance and want to make sure the  buildings is protected once they move in. I looked at landlords insurance but for one it's very expensive, and also covers a load of things I don't need with it being a trusted family member. I was thinking of getting buildings insurance, paid for by me, but in his name. If in the event, I did have to use the policy, is this likely to cause any issues?

Thanks

Will you be letting the property to your family member or will your family member be living there for free?  It makes a difference as to which type of insurance is appropriate and no you can't put the policy in someone else's name if you expect to policy to pay out.

I will be letting it to them.