Tenants Liability Insurance
Tenants liability insurance is a type of insurance for tenants. It offers protection and cover if a tenant damages a property. Tenants liability insurance is optional, some tenants may have this insurance others wont. The insurance covers when tenants cause accidental damage to the property. The policy normally covers minor incidents and accidents. Each policy will be different based on the insurer. You should check with each insurer what their policy covers. Tenants liability insurance can range from minor accidents to something more major. The insurance can cover, stains, broken furniture or even damaged plumbling. Which would be expensive to repair or replace. Some tenants have this insurance to protect them from losing their deposit.
The tenant can take out tenants liability insurance prior to moving in or whilst they are an existing tenant at the property.
It should be noted, some events are not covered by tenants liability insurance. Such events include but are not limited to, malcious acts, intentional damage, or if the damage was caused by somebody not named in the policy. Some polices cover if a guest causes damage, you should confirm if this applies to your policy. You can confirm this with your insurer.
Is tenants liability insurance required by law?
Tenant liability insurance is not mandatory within the UK, it is entirely optional. A tenant may want to consider tenants liability insurance to reduce the amount deducted from their deposit. It is usual for a landlord to make deductions to a deposit at the end of a tenancy. The deductions can be because of damage to inventory of the property itself. Having the insurance in place may cover these losses.
The landlord may have contents insurance which may protect against some damages. This is not a requirement and it is at their discretion whether they use their insurer to cover damages. A landlord can also have accident damage insurance. The insurer will cover accidental damages.
What is not covered by tenant insurance?
Its likely tenants liability insurance does not cover the followin. It is worth checking with individual insurers on what their policies cover.
Wear and tear: this damage is assumed to occur naturally over time so almost never will be covered by an insurer.
Unoccupied properties: If damaged is caused whilst the tenant is away for an extended period of time. This is different for each policy. It could be caused by weather damage, if so it may be the landlords responsibility.
High-quality items: most policies will have a limit on value of claim. It is likely the expensive items will have to be declared to the insurance provider.
What is the difference between tenants liability insurance and contents insurance?
tenants liability insurance is intended to cover damage you as a tenant causes to a property you are renting. This also covers items belonging to the property you are renting. Contents insurance, covers your own contents, your own belongings. If you damage the landlords items this will not be covered by the insurance. You may have contents insurance which also includes tenants liability. If so, your policy may cover damaged caused to the property and belonging you are renting. This should be clarified with your insurer.
Commercial premises: If the property is used for commercial purposes. Aany items used for a commercial purpose must be included in a seperate content policy.