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Rental Contract Requirement To Insure Landlords Property

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According to this thread: http://www.housepricecrash.co.uk/forum/index.php?showtopic=110994

this is an unfair term so can't be enforced. Nothing changed in that time has it? This is an unfurnished let so its not like there's much stuff to cover that wouldn't normally be covered by a tenant deposit in the first place. I will informally challenge it with the agent but don't want to rock the boat even before we've got the keys.

It would be truly despicable to take out a suitable policy, show it to an agent and then cancel in the cooling off period.

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According to this thread: http://www.housepricecrash.co.uk/forum/index.php?showtopic=110994

this is an unfair term so can't be enforced. Nothing changed in that time has it? This is an unfurnished let so its not like there's much stuff to cover that wouldn't normally be covered by a tenant deposit in the first place. I will informally challenge it with the agent but don't want to rock the boat even before we've got the keys.

It would be truly despicable to take out a suitable policy, show it to an agent and then cancel in the cooling off period.

According to ARLA:

Landlords and tenants should take care to review any existing policies when renting or letting a property for the first time as some standard insurance products will either not provide cover, or might place restrictions on cover, for rented property and/or its contents. A failure to inform your insurer that you are renting/letting a property could invalidate any subsequent claim. It is for a landlord to insure the building and his/her contents, fixtures and fittings. The tenants are responsible for insuring any of their own possessions. There are various specialist insurance products designed for landlords and tenants and rented property: - Buildings, Contents, Legal Expenses, Emergency Repair cover, Rental Guarantee cover etc. [After the 14th January 2005 it will be illegal for a letting agent (or anyone else) to advise on or sell such general insurance products unless they are authorised by the Financial Services Authority (FSA), or, directly regulated by a broker registered with the FSA.

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According to ARLA:It is for a landlord to insure the building and his/her contents, fixtures and fittings

I think the point of these insurances is that the LA's (try to) insist that the tenant insures the LL's property for damaged caused by the tenant.

Apart from it being a chance to rake in a recommendation fee, that is

tim

Edited by tim123

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I think the point of these insurances is that the LA's (try to) insist that the tenant insures the LL's property for damaged caused by the tenant.

Apart from it being a chance to rake in a recommendation fee, that is

tim

Its pretty much a standard requirement for the tenant to insure the landlords building in the commercial world and as far as I know has always been.

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I expect it's about liability.

Suppose you leave a pan frying on high and cause a fire. Or let the overflow get blocked and leave a tap running causing a flood. Good idea to be insured.

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Its pretty much a standard requirement for the tenant to insure the landlords building in the commercial world and as far as I know has always been.

This isn't the commercial world and I have no requirement to insure the building

Good idea to be insured.

There's a difference between good idea and contractual requirement to have it which is what I want to check.

As it stands I am told I need insurance but have not been given any guidance as to the level of cover required, save for a "recommendation" of a suitable insurance company... This is the issue the OFT have previously highlighted.

Edited by daiking

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This isn't the commercial world and I have no requirement to insure the building

There's a difference between good idea and contractual requirement to have it which is what I want to check.

As it stands I am told I need insurance but have not been given any guidance as to the level of cover required, save for a "recommendation" of a suitable insurance company... This is the issue the OFT have previously highlighted.

Our ex agent introduced this....they had a great deal on insurance with 5K cover...only £150 per annum...I told them to shove it and emailed the T+Cs of my own contents cover which had 5K of landlords cover as well as my business equipment....

they squeeled for weeks with emails and letters.....so I just said if they insisted, Id have my deposit back as that was to cover things id damaged....they shut up.

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Its pretty much a standard requirement for the tenant to insure the landlords building in the commercial world and as far as I know has always been.

It's pretty much standard for consumer legislation NOT to apply to business contracts.

And there's a reason for this. It's because businesses are expected to have the nous (and the money) to take legal advice, which consumer often do not have (so lawws are created to protect them).

tim

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I haven't read my rental agreement for years, but I think there may be a requirement for me to insure the LLs fixtures and fittings. Consequently, I may be liable for replacement cost in the event of a fire etc. I don't insure my own stuff either, my risk.

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As it stands I am told I need insurance but have not been given any guidance as to the level of cover required, save for a "recommendation" of a suitable insurance company... This is the issue the OFT have previously highlighted.

I wouldnt bother getting it, when we moved to our current place i hunted around and got tenant insurance with this clause in it which was more expensive than regular insurance, the agent then didnt even ask about it.

Luckily i had time to cancel the insurance just after we moved in and get normal contents insurance

This is all about a kickback to the agent and to be clear it is an unfair contract term to make you taking the insurance out a condition of taking the tenancy, therefore you can ignore it.

Short answer.. dont do it

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Ive just been told today on the phone that i had to have this!

Its £60 for 12 months and is transferrable to a new property if i move. I asked the lettings lady and she said it was compulsory.

We may have to revist that particular conversation.

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According to ARLA:

Do you have a link for this? Im on the ARLA website now and cant find this. It reads more like a sales pitch for the insurance

"...make the tenant legally liable..."

"...countless examples..."

"... horrified to discover ..."

Some good disturbane techniques there.

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Do you have a link for this? Im on the ARLA website now and cant find this. It reads more like a sales pitch for the insurance

"...make the tenant legally liable..."

"...countless examples..."

"... horrified to discover ..."

Some good disturbane techniques there.

Link: http://www.arla.co.uk/infosheets/list.aspx?id=2

Click on 'What about insurance?'.

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Short answer.. dont do it

Short answer, I need to show I have it to get the keys ;)

Do you have a link for this? Im on the ARLA website now and cant find this. It reads more like a sales pitch for the insurance

"...make the tenant legally liable..."

"...countless examples..."

"... horrified to discover ..."

Some good disturbane techniques there.

Yeah, got imilar off the agent, with a tale of how a tenant they had was "lucky" to be insured after having a stain on a carpet. Apparently having over a months rent as deposit is not good enough for landlords :rolleyes: I thought that then was not a good time to ask about how much they paid out because you wouldn't necessarily be able to take new for old amounts out of a deposit for things like carpets, fair wear and tear and all that ;)

Its a case of yes sir, no sir, 3 bags full sir unless you're prepared to meet their initial demands and sign a contract with a number of terms that could be argued as unfair. I can live with that.

Edited by daiking

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Short answer, I need to show I have it to get the keys ;)

Yeah, got imilar off the agent, with a tale of how a tenant they had was "lucky" to be insured after having a stain on a carpet. Apparently having over a months rent as deposit is not good enough for landlords :rolleyes: I thought that then was not a good time to ask about how much they paid out because you wouldn't necessarily be able to take new for old amounts out of a deposit for things like carpets, fair wear and tear and all that ;)

Its a case of yes sir, no sir, 3 bags full sir unless you're prepared to meet their initial demands and sign a contract with a number of terms that could be argued as unfair. I can live with that.

we have this cover in our contents insurance....TESCO home insurance.

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Interesting development, this. I have never heard of it before.

Is it an unintended consequence of the TDS legislation? Landlords are slowly realising they can no longer treat the deposit as their own property betterment fund, so they are looking for other ways to force the burden of 'wear and tear' repair onto tenants?

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Thanks for that, but it doesnt square with this part of the site

http://www.arla.co.u...list.aspx?id=3#

under 'Tennants - Contects Insurance'

I started to read that

"Although a conventional home contents policy will give a basic degree of cover for most insured perils it is not specifically designed for tenants and there can be some major gaps in the cover you need. Often the minimum sum you can insure for will be far in excess of what the tenant needs, typically a minimum of £10,000 – £12,000.

Most specialist tenant policies will provide the tenant with cover starting from £2,500 upwards and will usually cover accidental damage that you may cause to the landlords fixture, fittings, buildings and contents."

Course, homeowners using the same contents cover have major gaps in their cover....this is errant nonsense on the part of ARLA, and the dealings Ive had with them and the above nonsense prove to me they are a shower of tw@s.

so what the cover starts at £10-£12K....if you dont have sufficient cover for the value of things in your inventory, you will lose a proportion of each and every claim.

A lounge can easily have £5K of stuff in it, then there is the kitchen with its appliances, everything....then add the tenants gear, clothing, jewelry and £12K isnt so much.

specially when their "specialist cover" quoted for me was similar in cover to the Tesco were offering....and the entire section in the booklet on landlords possessions was more or less the same wording in my booklet as their specialist booklet.

I guess its the same insurance but cut right back....

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A lounge can easily have £5K of stuff in it, then there is the kitchen with its appliances, everything....then add the tenants gear, clothing, jewelry and £12K isnt so much.

Yeah, but rich tenants are very much the exception, especially if what you read was written before the bust. Pretty-much anyone whose lounge had £5k rather than £500 worth in it would traditionally aspire to buy.

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Its pretty much a standard requirement for the tenant to insure the landlords building in the commercial world and as far as I know has always been.

Although many business tenancies may be described as being on "FRI" (full repairing and insuring) terms what happens in practice is that the landlord insures and the tenant reimburses the premium. Any landlord who passes the obligation to insure anything he owns onto a tenant is a fool as he loses control. The only exception to the rule is where you have a "building lease", that is where the landlord lets land for a long period at a ground rent and the tenant constructs the building.

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Yeah, but rich tenants are very much the exception, especially if what you read was written before the bust. Pretty-much anyone whose lounge had £5k rather than £500 worth in it would traditionally aspire to buy.

sorry, forgot, but tenants are scum.

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Yeah, but rich tenants are very much the exception, especially if what you read was written before the bust. Pretty-much anyone whose lounge had £5k rather than £500 worth in it would traditionally aspire to buy.

Only just spotted this, or i would have replied sooner.

Thats a really bad assumption, my girlfriend works with many so called under priveledged families, and although they "cant" afford food (yeah well) from the stories she tells me i can tell you they all have way more than £5k worth of stuff in the lounge (tv, blu ray, xbox... etc) . And none of them aspire to buy as why would they... they get everything paid for

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  • 312 Brexit, House prices and Summer 2020

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      • down 5% +
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      • Even
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      • up 5%



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