Insurance

exe76

Forgive me if this seems an obvious question.

We are letting our late Mum's retirement flat to a tenant in November

The complex (unfortunately) has the service contract with First Port which covers the Building Insurance. 

With a tenant in the property, what sort of insurance would we need - presumably landlord insurance, contents(?), but wanted to ensure we get the correct type and avoid anything we do or don't need. 

The management company of the let has advised us all insurances are to be covered by ourselves. 

Many thanks. 

Bigphil1474

Is it furnished? Normally the tenant takes out contents insurance for their belongings , the landlord normally covers the buildings insurance. I believe there is a thing called Landlord contents insurance - if they provide furniture etc. to protect from fire and theft. Contents insurance is optional, buildings insurance isn't. Landlords insurance is also optional, so have a look what it offers to you and whether you want it. It can cover things like loss of income, boiler repairs etc.

I'd be researching landlords responsibilities to make sure you cover everything, if you haven't already.

eddddy

Regarding Buildings Insurance...

I guess you've checked the lease to see what the 'rules' are about subletting the flat.

• Many retirement flats don't allow subletting - and in that case, the buildings insurance might not cover subletting. (And you shouldn't be subletting anyway!)

• Alternatively, if the lease allows subletting with consent (from FirstPort), and you have consent (from FirstPort), then they should have appropriate buildings insurance in place for subletting.

• Very occasionally, leases allow subletting without having to get consent (but that's unusual). In that case, the buildings insurance should allow subletting.

In any case, it might be worth asking FirstPort for a copy of the buildings insurance policy, to check what is covered.

For example, if the flat becomes uninhabitable due to an insured risk (e.g. fire, explosion, flood), can you claim for 'loss of rent'? (And how would you deal with housing your tenant in those circumstances?)