As a landlord, you are no doubt aware of your responsibility to take out adequate landlord insurance coverage to protect your livelihood, your tenants and your rental property. However, do you know how to respond when your tenants ask to see your insurance policy?
UK tenants have a right to see their landlord’s insurance policy. Once requested, the landlord must supply details of the policy within 21 days, including the insured amount, insurer name, and covered risks. The tenant has the right to inspect and copy the policy.
Let’s dive deeper into why your tenants may request to see details of your insurance coverage and how you should react when they do.
At Glowsure, we understand the complexities and responsibilities that come with maintaining a harmonious tenant-landlord relationship. We can support you in finding the best insurance deal on your building insurance and other landlord insurance policies to protect you, your tenants and your rental properties.
For more information or to receive a quote, please contact us.
Why would a tenant want to inspect a landlord’s insurance?
Your insurance policy directly affects your tenant, so naturally, they may have an interest in seeing it. For example, in the event of a disaster, such as a fire or a flood, your insurance policy will dictate how quickly repairs can be made, how long they’ll have to find alternative accommodation and what they can expect in terms of rent reduction or compensation.
Also, by inspecting the policy, tenants can determine if they need to obtain their own home insurance to protect their possessions against damage caused or theft.
What should you do if a tenant asks to see your landlord insurance policy?
If a tenant asks to see your landlord’s insurance policy, you should provide it to them within 21 days of receiving the request. You may be hesitant to do so, but it’s essential to be transparent with your tenants. Not only is it your legal obligation to provide a copy of your policy if requested, but it’s also a good way to establish trust and open lines of communication.
You should also take the opportunity to explain what your insurance covers, i.e. structure of the building and any fixtures, fittings and furnishings that belong to you, and what it doesn’t, i.e. the tenant’s possessions. Remind them that it’s their responsibility to purchase their own home contents insurance to protect their personal belongings.
If a landlord refuses to provide their insurance documents to the tenant when requested, it would be considered a breach of their statutory obligations under the Landlord and Tenant Act 1985 and the Consumer Rights Act 2015. In this case, legal proceedings could be brought against the landlord.
Talk to Glowsure about your landlord insurance requirements
At Glowsure Insurance Brokers, we support landlords in finding the right insurance at the right price. You can rely on us for professional guidance on the commercial insurance market and expect friendly and high-quality service from our close-knit team.
Your tenants have the right to ask to see your landlord insurance policy, and it’s your legal obligation to provide it to them, if requested, within 21 days. While it may seem daunting to share this information, it’s essential to be transparent with your tenants to establish trust and open lines of communication.
By doing so, you’ll help create a positive relationship, which can lead to long-term tenancies and a profitable investment property.
Is it a legal requirement to have a tenancy agreement?
A tenancy agreement is not a legal requirement, but having one in place is strongly recommended. It outlines the terms and conditions of the tenancy, clarifies the rights and responsibilities of both parties and helps establish a framework for the landlord-tenant relationship.
The agreement can also include provisions related to insurance requirements, which can further protect the interests of both the landlord and the tenant.
What does landlord buildings insurance cover?
Policies differ, so it’s important to have a thorough understanding of what is and isn’t covered. But generally, buildings insurance for buy-to-let property covers the structure of the property, including the walls, roof, floors, and permanent fixtures, against perils like fire, flood, storm damage, and vandalism. Usually, accidental damage requires a separate policy.
Remember, landlord-tenant situations can be complex. This blog article is merely a guide, and it is essential to seek legal advice to ensure compliance with the law and to understand the specific rights and obligations in your situation.