UK landlords should already be aware of the necessity, legality and financial importance of having the right insurance protecting their property asset and should always seek to get their rental properties suitably covered with a comprehensive landlord or Buy-To-Let insurance policy.
However, whilst landlords stay insured keeping their property assets protected, […]
However, whilst landlords stay insured keeping their property assets protected, very few tenants bother to investing in contents insurance or specialist tenant insurance.
Even though the tenants don’t own the property and are therefore not responsible for the actual bricks and mortar, the property does still contain all of their personal belongings, including important documents and irreplaceable mementoes and so insurance should be an important consideration.
In the event of a claim having to be made, in the case of a fire, for example, tenants may have mistakenly thought they would automatically be covered by the landlord and tried to claim for loss of their important and expensive items from the Landlords Insurance policy, the landlord would receive compensation for the damage to the property, whilst the tenants would find, in most cases, that their claims were unsuccessful and they would be left with nothing.
Tenant Insurance is a necessity is because it is highly unlikely that any tenant belongings will be covered by the landlords insurance. The landlord should have insurance cover to protect the fabric of the building itself, (including certain contents such as the kitchen cupboards, bathroom fixtures etc) and even cover for loss of rent but not the contents of the tenants.
Tenant insurance will also help to protect the tenant’s deposit as good policies cover tenants against accidental damage.
Read the full article on Legal 4 Landlords Blog