landlords Insurance
Hello
During discussion at a Landlords forum it was mentioned that their insurance would not cover them if they had no control over the tennants. e.g. if the Council placed people in the property through nomination rights from a grant or loan scheme.
Has anyone who has set up a financial assitsance scheme run into any similar issues?
Thank you
- Forums
re landlords insurance
Hi,
I have found that many insurers are not willing to insure landlords with DSS tenants, especially when nominated by the council. I know Endsleigh do, however they don't insure properties that have been empty for over 120 days, which is not uncommon working for an Empty Homes Team. 'Insure it all' also insure landlords with DSS tenants as do 'Blue Fin,' however from my experience these are both expensive.
I hope this is some help Luke. I would be extremely grateful if anybody is aware of any cheap insurers that cover DSS tenants nominated by the council.
Regards
Daniel Thorning
landlord insurance
Daniel/Luke/Anyone
Hamilton Fraser Insurance at present do not descriminate against benefit recipients or local authority nomination (grant terms and conditions). They also offer discounts to members of the National Landlords Association. www.landlords.org.uk Hamilton Fraser can be found on the opening page of NLA website.
Insurance companies refusing to renew policies for landlords in our Private Sector Lease Scheme is giving me cause for concern. Particularly where properties received grant assistance and have 7 years nomination. I am also receiving calls from BTL landlords with a void who state they will accept someone from our waiting list with a rent bond (which we can do), but then the landlord phones back to say sorry their insurer will not accept a tenant from the local authority or one in receipt of benefits. Local rural wage often means good people claim benefits to survive. Sadly, we are also seeing redundancies.
In my opinion it is definitely descriminatory to refuse to insure a property if the tenants are in receipt of benefit. If the tenant has history - arson/house wrecking then perhaps ok to exclude insurance cover before start of tenancy, if that history is known, many tenants are cunning and hide information. But what happens if this is not known or there is a change in tenant circumstance during the tenancy agreement and buildings insurance period. For example, the working non benefit claiming tenant is made redundant, claims benefit that the landlord may not be aware of because the tenant has not informed him and the rent is being paid on time. What happens in the event of an insurance claim for house fire/burst pipes and the insurer becomes aware the tenant is not working? Perhaps insurance assessor has gleaned this. Will the insurer cite a disclaimer and not pay?
Many landlords are now asking for local authority to be guarantor in the event their insurance will not pay. We do not have the budget to accept this risk. I am looking to present 'landlord insurance' as a topic at our next landlord forum in Apr. If anyone has a good contact in the insurance regulatory world that could give clarity and assurance and is willing to give a presentation, please let me know.
Regards to all
Jo Rickman
Housing Enabling Officer
North Dorset District Council
jrickman@north-dorset.gov.uk
01258 484377