Do I need a landlord insurance?

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    Do I need a landlord insurance?

    Hi all,

    I'm struggling to find out whether I should buy a landlord insurance or not.

    I own a share of freehold (5 flats in total) and our housing association has a regular building insurance.

    I rent my flat and I can't figure out whether my building insurance would cover me in case of, for example:

    - damage to my flat's fixture and fittings;
    - damage to my flat's contents;
    - damage accidentaly caused by my tenant, either to my flat or to the common parts;
    - damage suffered by my tenant either inside my flat or within the common parts (for example falling while slipping on a rug inside the flat or falling down the communal stairs).

    By reading the building insurance's policy it appears that also my contents are covered, the insurance broker also stated that the insurers did provide the landlord's contents cover in the amount of £25k, but in the certificate of insurance there's written only "communal contents".

    No clue with regard to fixture and fittings and the other points...

    I know I could make use of a landlord insurance for things such as rent guarantee or malicious damage by the tenant but the abovementioned aspects are the ones that matter the most.

    I attach a few screenshots.

    Thanks for your help!

    James

    Attached Files

    #2
    I have had this exact same question and I entirely agree that it is very confusing. When I was researching it, I actually went to the trouble of directly contacted my freeholder's block insurer, and even they couldn't give me a straight answer!

    In the end, I purchased landlord's insurance for (i) contents; (ii) fixtures and fittings; and (iii) liability (to tenants and others) – i.e. everything people normally insure for except buildings. I think it is possible that I am double-insured in some areas, but the insurance I purchased is only £100 a year.

    Comment


      #3
      The leasehold property system is rather confusing for most people.

      The cost of "building insurance or block of flats " under the lease is contributed by leaseholders to the service charge account or paid direct to the freeholder's managing agent based on the % stated in the Lease. The policy holder is usually the freeholder or RMC or RTM

      The cost for insurance cover inside the flat for contents and public liability under separate policy. The policy holder is the leaseholder or the monthly renter. The policy holder can only insure for the policy holder's own contents , not for contents belonging to another party.

      Comment


        #4
        Gordon999,

        The problem here is that the policy holder is the housing association, made up of the 5 flat owners who each own a share of freehold (me included). The building insurance policy also has an "all other interests" clause.
        In my opinion the building insurance should cover damages to my flat's fitted fixtures (i.e. kitchen and bathroom) and my public liability against third parties (including my tenant) but I'm not sure.

        Comment


          #5
          JamesHopeful,

          I also purchased a landlord's insurance but I'm not intending to renew it this year cause I think there are good chances that it will not operate due to possibly being double insured. I really don't know what to do....

          Comment


            #6
            J378,

            The Housing Assoc. owns the building and has insurable interest in the building. So it insures cover for building re-instatement value and for freeholder's contents and alternative accommodation etc. . ( known as Buildings Insurance )

            The leaseholder ( flat owner ) has insurable interest for contents inside the flat and for risks of claims arising from the rental tenant. So the "landlord insurance" give cover for the risks from the rental tenant. The "landlord insurance policy " costs about £100-£120 p.a and is allowable expense against rental income. Its the way to insure against risks of claims from your tenant ( tripping over loose carpets and water leak into flat below etc. ) . Don't say "I really don't know what to do ".



            Comment


              #7
              Originally posted by James378 View Post
              JamesHopeful,

              I also purchased a landlord's insurance but I'm not intending to renew it this year cause I think there are good chances that it will not operate due to possibly being double insured. I really don't know what to do....
              My understanding is that if you are double insured for a particular risk, you can claim from either (and the insurer you claim from can then require the other insurer to reimburse them for half, but that happens behind the scenes).

              Comment


                #8
                Originally posted by JamesHopeful View Post

                My understanding is that if you are double insured for a particular risk, you can claim from either (and the insurer you claim from can then require the other insurer to reimburse them for half, but that happens behind the scenes).
                Ok this helps a lot thank you

                Comment


                  #9
                  Originally posted by Gordon999 View Post
                  J378,

                  [...omissis....] Don't say "I really don't know what to do ".


                  Thank you for your reply.

                  If you say that given the - in your opinion - negligible expense involved I shouldn't bother and I should just buy a Landlord insurance I can see the point.

                  I prefer not to waste any amount of money though and I think my question raises some legitimate doubts due to the peculiarities of the instant case, that is:

                  - the flat owner owns a share of freehold, so the insurable interests is both towards the building and the flat;
                  - tha insurance policy has an "all other interests" clause;
                  - the insurance policy has also a “Landlord Contents” clause that includes both common parts and residential accomodation (defined as “Furniture furnishings fitted carpets appliances and other household goods in any self-contained flat or other private dwelling at the Premises belonging to You or for which You are responsible.”). In the Certificate of Insurance though I can only read “Communal Contents”.
                  - naturally the building insurance has public liability cover.

                  In the light of the above wouldn't damage to flat's contents already be covered by the "Landlord contents" clause?
                  Wouldn't damage suffered by the tenant slipping on a rug be covered by the building's insurance public liability cover?

                  Comment


                    #10
                    It's an unusual situation as the Policy Holder is the Housing Association and therefore they would be the Landlord as defined so I don't think you can rely on your contents being covered despite owning a fifth of the freehold.
                    But I would always leave contents cover as an option for tenants anyway...

                    Comment

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