Let property insurance and your tenants

Posted: 4th Jun 2014

Sometimes, the relationship between landlords insurance and tenants is not clearly understood.

If you are wondering how a cheap buy to let property insurance quote protects you against tenant-related issues, the following points might help:

  1. a policy should typically cover you against third party liability. That would, broadly speaking, include a number of circumstances where your tenants sue you for injuries or damages they have sustained as a result of your property and inappropriate maintenance;
  2. some policies might offer a degree of cover for the legal costs involved in pursuing tenants to recover unpaid rent arrears – though only in situations where their location was known;
  3. by contrast, policies typically might not cover you for situations where you became embroiled in legal and eviction disputes with your tenants;
  4. similarly, you might not be able to claim for unpaid and unrecoverable rent arrears on a standard policy, though such cover might be available on an additional option basis;
  5. it is critically important for your tenants to understand that your landlords’ insurance typically will not cover them for any personal accidents they may suffer, illness or the theft / destruction of their property following a burglary or natural disaster etc.;
  6. some policies might offer a loss of income contribution in circumstances where your tenants have to vacate your property to allow you to repair it following a problem. This would typically not include circumstances where you had no income due to normal gaps in tenancies;
  7. you might find that your policy will not make any contribution in circumstances where your tenants are unable to pay you rent due to things such as redundancy, illness, accident or indeed any other situations where they simply did not have the money to pay the rent;
  8. policies may or may not offer cover for malicious or accidental damage by tenants.

Tenant-related issues can be complicated and at Cover4LetProperty we would welcome the opportunity to explain any of the above in more detail, if you feel it necessary.

Understanding these issues and communicating them to your tenants, as part of your tenancy agreement, might be imperative.