Tenants misguided over contents insurance

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by Gill Montia

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 the UK have no home contents cover whatsoever.

The survey also revealed that one-third of private renters believe their personal possession were worth £10,000, with some individual items worth over £1,500.

Leaders is also reminding landlords that standard buildings insurance generally excludes properties that provide an income and therefore recommends a specialist letting policy.

Landlord cover can also be obtained for accidental or malicious damage by tenants; loss of rent following an insured peril; landlord liability; loss of rent from non-occupancy and a range of other risks.

More casual landlords are now entering the rental sector because the property market downturn has left some people who need to relocate choosing to rent out their homes.

For this group in particular, the importance of buying the correct insurance needs to be understood, to prevent a decision taken out of necessity turning into a disaster.