Landlords - Contents Insurance
Most specialist insurers will offer the option of a full contents
policy or a limited contents policy.
Limited Contents Cover. Most UK properties are currently let
unfurnished / part furnished. A limited contents policy would
typically give a fixed limit of around £5,000 of cover items such
as: *Carpets *Curtains *Sun Blinds *Light fixtures and fittings
*Kitchen white goods on a new for old basis.
In addition to the normal insured perils most such policies will
provide the landlord with Employers Liability and Landlords
Liability in relation to the contents. Again these limits need to
be adequate and at least £5m.
Examples of injuries to tenants or their guests caused by
defective cookers, light fittings and loose carpets have resulted
in substantial compensation claims. It is strongly recommended even
for sparsely furnished properties that landlords have at least this
basic contents and liability cover.
Premiums for limited contents cover are quite modest at around
£50-£70 per year. The liability cover alone is worth the peace of
mind. Personal injury claims have increased by 85% since 1990 and
awards of £100,000+ for modest injuries is not uncommon.
Full Contents Cover. If your property is fully furnished or the
limited contents would cost more than £5,000 to replace, you should
have a full contents policy. You would normally select the sum you
wish to insure for; again this should be adequate to replace all of
the contents on a new for old basis.
Over 50% of UK owner occupied properties are under-insured for the
contents. Generally individuals place a value of what the contents
are worth not what it would cost to replace them with new
items.
Tenants - Contents Insurance
Tenants and landlords very often overlook this. Generally for the
tenant who has paid the first months rent + a deposit +
administration fees in order to move into the property, insurance
is the last thing on their mind.
Although a conventional home contents policy will give a basic
degree of cover for most insured perils it is not specifically
designed for tenants and there can be some major gaps in the cover
you need. Often the minimum sum you can insure for will be far in
excess of what the tenant needs, typically a minimum of £10,000 -
£12,000.
Most specialist tenant policies will provide the tenant with cover
starting from £2,500 upwards and will usually cover accidental
damage that you may cause to the landlords fixture, fittings,
buildings and contents.
Should the tenant accidentally damage the carpet with a wine stain
or hot iron or a work surface with a hot pan mark, these events
will be covered. Usually the tenancy agreement will make the tenant
legally liable for such damage, any damage found at the time of the
check-out will be deducted from the deposit or security bond.
If the tenant has adequate insurance these events will be covered,
thereby protecting your deposit.
Recent studies have shown that less only 1 -20 tenants have any
contents cover at all.
There are countless examples of tenants who have experienced a
loss through, burglary, fire, flood or other insured peril, which
has damaged their contents and have been horrified to discover the
landlord has not insured their personal possessions. They have been
left with the cost of replacing the items themselves.
Any items a tenant takes into the property it is their
responsibility to insure. Most policies will give an option for
basic cover which can usually be extended to cover high risk
personal items which are taken outside the home, on holiday or
Worldwide i.e. Cameras, sports equipment, clothes, jewellery
etc.
In certain high-risk inner city post codes there will usually be a
requirement to have minimum-security locks on doors and accessible
windows.