Need to Understand Landlord and Tenant Insurance Claims

Posted on June 13th, 2008 | by John Glenn |

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According to recent survey, million private tenants have no home contents insurance, inspite of this that it is estimated that their possessions to be worth more than £10,000 in value. So there is very much misunderstanding in these insurance claims. Many landlords and tenants are risking thousands of pounds of their personal possessions by not insuring themselves against accidents, bad weather or crime.
Many tenants who do not have contents insurance believe that their residential landlord’s insurance policy will cover their contents. On other hand, many landlords make the mistake of thinking that they are covered by standard buildings insurance for letting their property to tenants.

Landlords who have a standard household policy, as well as not being covered for what they think they are, they may not be covered for accidental or malicious damage by tenants; loss of rent following an insured peril; landlord liability; or if their property is empty for more than 30 days. For instance, accidentally causing a burn mark on a carpet - a very common occurrence - could cost a tenant £500 to replace the whole carpet.

So, Insurance is something most of us would rather not have to pay out for, but having the right policy in place can save an enormous amount of stress and financial hardship if the worst happens. So, there is need of insurance for both landlords and tenants