BUILDINGS INSURANCE ON INHERITED HOUSE THAT SONS LIVE IN.

BARGAINMAD_2

My husband inherited his father's house last year and our sons are living there rent free, paying bills only.  

As no money is exchanging hands I understand we don't need landlords insurance  as there is no formal tenancy agreement in place- is this correct?   Or is it best to get landlords insurance as we are not living there?

I am confused!  Any advice would be greatly appreciated as the insurance is due to be renewed in 3 days time.  Students did previously rent out the property and there was a tenancy agreement in place and it was landlords insurance.    Thanks 

It looks like my husband can't get standard building insurance in his name if he doesn't live at the property.  

propertyrental

You'd do better posting on the insurance board here:

https://forums.moneysavingexpert.com/categories/insurance-life-assurance

(oh and SHOUTING is best avoided for best responses....)

HobgoblinBT

We rent a family owned home to our son.  As it is let to a family member our insurer agreed to it being covered under a standard homeowner policy ie not a landlord policy.  In all other respects we treat it as a commercial rental ie electrical and gas inspections and certificates, how to rent leaflet, tenancy agreement, regular inspection and repairs.  We did not take a deposit, but if we had would have registered under one of the approved schemes.  

 

It may seem a bit cold to be this formal with a let within the family, but it is in the tenant’s and the landlord’s interests to follow the rules, especially if a dispute ever occurs.  NB, we have never had a dispute.

BARGAINMAD_2

Thanks HobgoblinBT.  I thought it was only strictly a tenancy when money exchanged hands. 

TBH we can't be bothered with the formality of it.   

I understand landlord insurance covers all sorts of other things too, such as rental voids, which is why it can be three times the price of normal buildings insurance.  And this isn't applicable in our case. 

TBagpuss

I think if they are paying the bills they may well be classed as tenants so you may wish to get some advice.

Other than that, why not call the insurance co and ask? They may well be willing to treat it as normal household insturace if it's a Family member living there to keep an eye on the place.

If the plan is for your sons to stay there longer term then you probably should look at getting something a bit more formal in place even of they are only paying a token rent.