Does landlord need to take out insurance for the property for AST

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    Does landlord need to take out insurance for the property for AST

    I am renting out my leasehold flat under an AST (Assured shorthold tenancy) agreement, the tenancy is 12months. The contract provided by my agent contains a term that the landlord shall take out insurance of the property. Given the flat is leasehold, and my freeholder already insured the flat under building insurance. Do I need to take out another insurance for the flat? And if so will that be content insurance?

    #2
    Your freeholder would take out Buildings insurance for the whole building which you and the other leaseholders would ultimately be paying for via the service charge. If there was damage to the flooring, any of your contents and you want this to be insured against if the worst happens then you would take out contents insurance, I always inform T's to take out their own contents insurance as any items of theirs's would not be covered and they couldn't make a claim against me for any of their items being damaged.

    So it would be up to you if you wanted to take out contents insurance or not, depending on the cost of the premium and the value of the items in the property if they were damaged. If they break down, you would not be able to claim against this.

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      #3
      The insurance probably only covers 'normal' residential use not landlord insurance which is different.

      The tenant should insure their own possessions.

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        #4
        As far as I'm aware it isn't a legal requirement for any insurance though obviously it would be recommended. Last time I enquired standalone landlord insurance (to cover you if the tenant gets hurt and sues you) isn't available. If you find anyone who does this now please let me know.

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          #5
          As ash72 says, the buildings insurance in place covers you for the contractual obligation to insure the Property. You can chose to insure your own contents under a landlord policy. You may be looking at other landlord insurance; public liability, rent protection, legal and emergency cover, that sort of thing. There's no obligation to take these out and members will have different views on what's of value and what's not. If you are getting out other landlord insurance you may get contents as part of a 'package'. You should also check if your mortgage company (if you have one) has any insurance requirements - mine only requires buildings insurance.

          My tenancy agreements places an obligation on the tenant to insure their own possessions. It's definitely a point to stress but I don't ask for evidence and I wouldn't enforce it.

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            #6
            Originally posted by 123Landlord View Post
            My tenancy agreements places an obligation on the tenant to insure their own possessions. It's definitely a point to stress but I don't ask for evidence and I wouldn't enforce it.
            That's now illegal (Tenant Fees Act) whether you enforce it or not.
            You might want to make it a recommendation.

            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).

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              #7
              @jpleates - Thanks

              royw Alan Boswell? https://www.alanboswell.com/landlord...ity-insurance/

              Buildings Insurance is usually a contractual obligation. The government's model AST says 'comprehensive insurance' whatever that means - an AST is a legal document. I don't know if you could just leave it out - would a tenant ever notice? If it was in the contract and you didn't take out insurance, you'd be in breach, but I'm not sure what the consequences of that would be.

              I agree Public Liability isn't usually required.

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                #8
                Probably depends on EXACT wording of the requirements (eg there is a policy or leaseholders take out policy etc. Etc )
                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...

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                  #9
                  As far as I am aware, landlords insurance is essentially buildings insurance and public liability unless you get rent guarantee with it. Most block insurances should include those things.

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                    #10
                    that's what I understand - the landlord is recommended to take out insurance other than Building insurance which is done by the freeholder. It is in the sole interest of the landlord here to protect his own loss arise from the renting(loss or rent, landlord's furniture stolen, etc.) , should be up to the landlord to decide, not an obligation...

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                      #11
                      Best to include insured cover for water leakage from hot water tank inside the flat, causing water damage to flat below.

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