Tenants misguided over contents insurance

[Landlord]

Independent letting agent, Leaders, is raising awareness about landlord and tenant insurance.According to the organisation, tenants who do not have contents insurance are frequently under the impression that their possessions are covered by their landlord’s insurance.While this is possible, it is rarely the case and according to recent research, almost one million private tenants across [...]

More: Tenants misguided over contents insurance

[landlordinsurance]

I completely agree with this post although what I would say is that it is not just the tenants who are under the impression their contents is covered by their landlord. Some landlords come to us and think it is on their policy also.

Although the tenants contents are not the landlords problem, they are probably getting an earful from the tenant when they find out their not covered.

It is therefore vital that landlords are aware that their insurance is for their contents only so that they can make their tenant aware that they need to get there own insurance.

[BarryM]

Its worth making the distinction as landlords and tenants are often confused:

Tenants: Insure their own contents

Landlords: Insure their contents (having informed the insurer the property is being let); Insure the building (as part of service charge where leasehold - one more reason why its important to inform superior landlord /obtain consent to sub-let); They can also take out insurance against non - payment of rent / legal costs etc through approved referencing procedures.

I'm sure Landlordinsurance can add to this, but it's just the basics that tenants and landlords generally ask about

[landlordinsurance]

Not really anything to add Barry, other than the general rule of insurance is that you can only insure something that you have an insurable/financial interest in (i.e. something you own).

If this was not the case then I could insure the Ferrari parked outside belonging to my neighbour, set it alight and claim on the insurance policy I have taken out and make a huge amount of money (please note this is theoretical - and no my neighbour doesn't own a Ferrari... more like Fiat).

The same practice applies with contents insurance. A landlord may own the house but he doesn't own the contents therein which belong to the tenant. He therefore has no insurable interest on them. Likewise with the tenant on the landlords contents and the building itself.

[brian]

I think the possible confusion here is dependent upon unfurnished vs furnished tenancies.

[LaPal]

I think landlords should take the time to explain this to their tenants. It just makes it so much easier and avoids alot of confusion in the long run

[UnhappyTenant]

Whats the situation with contents insurance if the loft is full of the dead mothers stuff. I rented an unfurnished property, the loft is full of stuff, the lease allows me to use the loft but I can get anything in it!!!! With dodgy electrics and a loft full of kindling !!! It does not seem too good for any claim on my insurance if the place does go up !!!!!!! I pay my contents insurance like a good tenant !!!!!!! What should I do?