Are Tenants Ever Liable for House Insurance?

Are Tenants Ever Liable for House Insurance?

Although it’s not a legal requirement, landlords who own rental properties are likely to need standard home insurance. As well as offering protection, this type of cover can be a condition of mortgage companies before they’ll loan the money.

In addition to the standard home insurance, there are other types of insurance that are available and specially designed for landlords to provide cover for their investment. However, is it ever the case that a tenant needs to consider taking out a policy? Can they be liable for house insurance?

Typical Cover for Landlords

Home insurance is something that all homeowners will come across when they buy their property. Standard home insurance cover differs from provider to provider, however there are some key details that most policies include.

Firstly, home insurance falls into two categories: buildings cover and contents cover. These include protection for both the structure, from the walls to the fitted kitchen, and the things inside. Usually, it includes insurance for the property against things like flood and fire.

There are additions that can be made to policies for an additional cost and landlords may opt to pay more for accidental damage, which is an increased possibility when renting to tenants.

What About Landlord Insurance?

While standard home insurance provides a lot of cover, landlords can opt to take out landlords insurance. This is a dedicated type of cover that accounts for the type of things that can happen to property that is let out on the rental market.

Landlords may choose to take out this insurance to allow for any issues that crop up with tenants. In addition, they might want to invest in this type of policy because they understand that accidents can happen.

What Insurance Should Tenants Know About?

With these different types of cover for their landlord, it may not occur to tenants to take out their own insurance. There are instances, however, where a landlord might consider their tenant to be liable for accidental damage to their property.

This can be the case if, under the tenancy agreement, the tenant is liable for the landlord’s fixtures, fittings and furniture. In this case, it makes sense to have cover in place should the kitchen table break or a candle in the bedroom burn a hole in the carpet. Tenants liability insurance is a type of cover that can offer protection if something goes wrong.

If you’re one of the 4.5 million people who are renting in the UK, it’s worth understanding that, you could be held responsible for damage to the property – even if your landlord has insurance. To find the latest insurance deals on your rented property, there are plenty available on Compare the Market.

By taking out cover, both the tenant and landlord can be protected if an accident happens.

Author: News @ Tenant Referencing

Keeping you up to date with landlord and property topics. Send in your story to media@landlordreferencing.co.uk

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