Is your tenant type covered?

Posted: 4th Jun 2014

You might think that a typical landlords’ policy would offer cover irrespective of the types of tenant that you have in your property.

Unfortunately, that might very well be wrong.

These are the facts that you might typically encounter in this area:

  • some policies, perhaps typically including those provided by ourselves at Cover4LetProperty, do offer cover for all tenant types that you may choose to let to;
  • some other policies providing landlord insurance may, however, be rather more selective;
  • for example, some providers might not offer landlord insurance for DSS claimants. Some others may not do so for other categories such as asylum seekers or students etc;
  • this is not, in itself, a form of prejudice but a reflection of the views of some insurance providers that these tenant groups may constitute a higher degree of risk than others;
  • when considering the importance of this condition, it might be worth keeping in mind just how many different dimensions of exposure you may have to tenants in your property;
  • that might include things such as malicious damage, public liability claims or perhaps, in certain circumstances, instances of dispute relating to arrears, evictions and attempts to recover unpaid rent from tenants who have fled;
  • not all policies offer cover for all of these areas and in the case of protection against unpaid rent, that might typically not be included in a standard landlords’ policy but regarded as specialist additional cover;
  • it might be advisable, for the sake of clarity, to make sure that your tenants understand that your various forms of insurance protection typically won’t offer them cover for things such as any personal accidents they sustain, damage to their own possessions in the case of a natural disaster or reimbursement should their property be stolen during a burglary. It might also be a good idea to make sure this is stated clearly in the terms and conditions associated with your tenancy agreement.

Although tenants are ultimately the source of your income, they may also bring with them their own challenges and financial liabilities.

That is why it is particularly important that you look carefully at the policy you are considering, to be sure that you understand exactly what protection it will provide you with for your tenants.