Login

Tenant Liability Insurance Is Best Method For Protecting Tenancy Deposits


Thursday, August 14, 2014
Specialist Tenant Insurance Saves Costly Repair Bills

Specialist Tenant Liability Insurance Saves Costly Repair Bills and Protects Tenants Deposits

Tenant Liability Insurance Can Help To Protect Tenants Deposits

The old saying that 90% of accidents happen in the home may be an over-used cliché but specialist Tenant Liability Insurance cover is the most effective way of protecting a tenant’s deposit as well as covering letting agents and landlords in the event of problems too.

Paying for property damage can be expensive, but even if the damage is accidental it is the tenants responsibility to pay for the repairs or the landlord is obliged to deduct any costs against the value of the tenants deposit.

Legal 4 Landlords tenants liability insurance covers accidental damage claims up to £2,500 (GBP).
Recent research has claimed that many tenants’ alleged mis-use of everyday household items, including irons, hair straighteners and flooring, are contributing significantly to many landlord insurance claims putting the tenants at risk of losing some or all of their deposit.
A standard contents only insurance policy taken out by a tenant will not cover them against their liability under the tenancy agreement for any accidental damage to the landlord’s contents, fixtures and fittings.Standard contents insurance can typically provide cover for lost personal possessions, the cost of replacement locks, cover for bicycles and personal items.

However, a specialist Tenant Liability insurance policy could specifically protect the tenant’s interests and value of deposit when it comes to check-out time at the end of a tenancy.

Tenant Liability insurance ensures that the tenant will get deposit monies returned in full at the end of their tenancy, as well as providing the landlord with peace of mind that most accidental damage will be covered, making it a win-win for both parties.

If the tenants deposit does not cover the cost of the repairs to the rental property then the tenant will be expected to pay the difference. If there is a guarantor in place they will also be expected to help pay for the repairs.

Accidents happened, and even the most careful tenants can unintentionally cause damage which could cost them the full value of their deposit, or worse much more in excess.

For just £60** Legal 4 Landlords tenants liability insurance costs less than a decent night out and provides the tenant with 12 months insurance cover against accidental damage that can occur in rental properties, including damage to any furniture, fitting’s and fixtures provided in the rental property.


This was written by Mike Clarke. Posted on at 11:30 am. Filed under Insurance. Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink. Follow comments here with the RSS feed. Both comments and trackbacks are currently closed.