Is Your Rental Property Insurance Valid

Insurance cover

Is Your Landlord Insurance Valid?

All UK Private Rented Sector landlords need to ensure that their rental properties are correctly and adequately insured.

Some Buy To Let and Landlord insurance policies may require intricate details regarding the property and its occupants including the tenants employment status or even the disclosure of criminal convictions.

This disclosure requirement doesn’t just apply to the person taking out the policy, i.e. The landlord; it also applies to the tenants.
So if a tenant loses their job or has a criminal conviction that is not declared to the insurance company, the landlord may find that their insurance policy for their rental property is null and void.

Obtaining this information from a tenant face to face may prove difficult.

Landlords could ask the tenant prior to the commencement of the tenancy and hope that the tenant gives them an honest response.

Legal 4 Landlords recommend landlords read the small print on all insurance documentation and advise landlords to ensure that all applicants are thoroughly tenant referenced.
However, this does not help if the tenant decides to be dishonest if a criminal conviction arises at a later date and the tenant does not inform the landlord.

Adding a stipulation clause to the Assured Shorthold Tenancy agreement, (AST) is one option for many UK landlords.
Landlords should ensure that their tenants are informed at the start of the tenancy that they (the tenant) must inform the landlord of any change in employment circumstances or if they subsequently get a criminal conviction.

If as a landlord, you do become aware of a tenants criminal conviction you should inform your insurance company immediately, as your landlord insurance cover may be compromised.