Contents insurance

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    Contents insurance

    I have had one tenant for the last 13 years. Every year I have taken out combined buildings and contents insurance for the rented property she lives in, as I thought this made sense. I have recently found out that the tenant has also been taking out contents insurance for the property she rents.

    Now, this is clearly stupid to have 2 contents policies (and is probably irregular). But, I am interested as to what other landlords do regarding contents insurance for their buy to lets?

    thanks in advance

    Nick

    #2
    No its not stupid. You can only insure your contents. Tenant can only insure theirs. If the tenant's iPhone is destroyed by your falling shelf, your insurance will not pay out, nor (usually) is it your responsibility.

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      #3
      You will probably only need about £5000 worth of contents insurance, so it shouldn't add much to the cost.

      Comment


        #4
        Originally posted by Mrs Mug View Post
        You will probably only need about £5000 worth of contents insurance, so it shouldn't add much to the cost.
        Just did a quick test quote on our site for adding £5k contents to an existing buildings policy. It only added about £20 to the annual premium! £1.67 a month seems worth it.
        Steve Smith - Company Director at a leading Landlord Insurance broker with 20+ years experience in the industry
        LandlordZONE Verified Poster and Topic Expert for Landlords Insurance since 2009
        See my profile for contact details

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          #5
          Originally posted by ashburnham View Post

          Just did a quick test quote on our site for adding £5k contents to an existing buildings policy. It only added about £20 to the annual premium! £1.67 a month seems worth it.
          Yes, but many (? most) buildings policies include carpets and fixtures as "building" so many landlords won't have £100 worth of contents let alone 5000. Usually any contents claim by a landlord without fully furnished properties will be less than the excess.

          None of this has to do with the OP's question though - which is that this does not insure the tenant's stuff, so let's not leave them with that impression.

          A lot of insurance ideation has to do with whether insurers will actually pay up on claims when bad stuff happens more generally. That notion has taken a bit of a battering recently as many have used every trick in the book to wangle out of things. Not all of them obviously - but a sufficient problem to make folk wonder.

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            #6
            I've got (limited) contents cover on my portfolio insurance, which covers the white goods and would cover anything being used temporarily like heaters or dehumidifiers.
            It adds so little to the cost that I've just left it there (and never claimed on it).
            When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
            Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

            Comment


              #7
              You don't have to own something to insure it but there is no point paying for cover for your tenants, it adds nothing to rental value
              I make a point of drawing tenant's attention to the AST clause that says they are responsible for ensuring their own goods.
              Your duplicate cover will just cause a dispute over who pays in event of a claim

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                #8
                I'm not sure, but is the OP saying that he has paid to insure the tenants contents?

                The landlord should insure his own contents. And the tenant should insure their own contents. So there would be 2 contents policies, but covering different things.

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                  #9
                  Section20z,

                  I have never ever seen a Landlord's policy that even says it cover's things not belonging to the insured person. Third party liability insurance is a different matter altogether. The landlord would not even know what it is he is insuring. No policy I have ever seen would pay out for a tenant's stolen stuff in the event of a burglary. Nor should it. Nor does it.

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                    #10
                    It's house contents covered, not belongings. I would hope my insurance would pay for my wife's possessions in the event of a claim.
                    or she would spit the dummy

                    Comment


                      #11
                      There wouldn't be any dispute about who pays.
                      You're insuring against a loss, and the tenant's property being lost, stolen or damaged doesn't cause any loss to the landlord, so there's no claim for the landlord to make.
                      When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
                      Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

                      Comment


                        #12
                        Originally posted by Section20z View Post

                        It's house contents covered, not belongings. I would hope my insurance would pay for my wife's possessions in the event of a claim.
                        or she would spit the dummy
                        Your policy would cover your family's possessions - the policy wording would be clear and if not find another insurer. It would not cover a violin left in your property by a neighbour though under most circumstances. There are huge problems with insurance when there are lodgers though (both for the lodger and the landlord).

                        Comment

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