insuring against arson by tenants

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    insuring against arson by tenants

    Can anyone clarify this for me -

    My landlord insurance states that it covers fire.

    But if the fire was started deliberately by the tenants or their guests, does it come under malicious damage by tenants?

    I have only been able to find insurance with malicious damage by tenants up to 25K - obviously not enough if the house is completely burned down.

    Is there any policy that will cover me for the entire cost of rebuilding in this eventuality?

    #2
    Surely fire is fire, however it was caused.

    What does the existing policy say - does it cover fire only if was accidentally started?

    Comment


      #3
      You are right in that this is confusing scenario as it indeed feels that it touches both the fire section and malicious damage by tenant sections of a landlord insurance policy.

      This does in fact come under the fire section unless specifically excluded so you need to read the fire section of your policy carefully. As long as it doesn't exclude arson or fire by tenant then it should be covered under the fire section.

      I've checked a few of our policies and arson caused by the tenant would all come under the fire section so fully covered but obviously I cannot speak for your specific policy.

      If in doubt, get it confirmed from your current insurer or change to another company who doesn't have a malicious damage by tenant limit so you know that whatever section it falls into, it will be fully covered.
      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

      Comment


        #4
        Has anyone have further development in regards to this post?

        Were new new landlords and 3 months into letting our flat this situation appears to hav ouccured, tenant has been arrested but not sure if there will be enough evidence

        we have a standard policy and it’s states exactly what’s above section 1 covered fire but excludes damage caused by explosion earthquake etc (nothing about arson/tenant) but section 6 covers malicious persons: excluding damage cause by employees tenants or person lawfully in premises

        as our insurance is through a broker, no one seems to be able to tell us what is covered, and all have said wait 5 days for an email

        Comment


          #5
          best insurance I know against arson by tenants is to let to tenants who aren't prone to setting fire to their accommodation.

          just because your insurance is through a broker, that's no reason not to have full details of what's covered by the insurance. You need those docs and it's a legal requirement for the insurer to provide them. Ask the broker for a link to them immediately. If they can't give you one and you are within your cooling off period, I'd find another broker. And I'd advise against buying any insurance where you cannot see precisely what is covered and what isn't.

          Comment


            #6
            Originally posted by S2017 View Post
            ....as our insurance is through a broker, no one seems to be able to tell us what is covered, and all have said wait 5 days for an email...
            Read YOUR policy as it applies to THAT property with THOSE tenants. No point asking here (no offence). If it is not clear ask broker for policy details in a document from your insurers (rather than, say, a short summary from broker).

            I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

            Comment


              #7
              Insurers usually insure against accidents, against unforeseen occurrences, items that cannot be inspected, such as collapsed outside drains within the property boundary.

              Ask any insurer this question.
              "I live in my own home, and want to burn it down. Will you insure me against me burning it down, and rebuild my £ 150,000 house".
              What do you think the answer will be ?

              Malicious damage is not normally covered.
              You are still responsible for anyone that you pass your house over to, and it becomes their home, their responsibility ( AND YOURS ALSO ) for the duration of the A.S.T.

              So don't hold your breath waiting for the answer you want to hear from the insurers.

              Comment


                #8
                According to http://www.clover-insurance.co.uk/te...ords-exposure/ whilst malicious damage by tenant is normally excluded, it is possible to get policies that include it; as such you need to check your specific policy.

                The other issue might be that, if the tenant had a criminal history, the insurance may be void, anyway.

                Comment

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