A tenant is a person or a group who has a rental agreement in place allowing them to live in the property. The tenancy agreement will set out the landlord’s responsibilities and will often specify the requirements for them to have the correct insurance in place.
Landlord Insurance protects the Landlord from financial losses connected to the rental such as theft, fire or weather damage and can be extended to include coverage for things like unpaid rent and malicious damage by tenants.
Different types of tenant:
Professional let – a working person or family who earn a living and pay their rent themselves
Department of Social Security (DSS) – a person on financial housing benefits from the council. Not all insurers cover buildings occupied by a DSS tenant but there are insurers who will. If landlords opt to rent their house to a DSS tenant, they will see an increase in their premium. Although many landlords do in fact decide with this option as it increases potential tenants.
Students – Similar to DSS, student lets also demand a higher premium for many insurers.
Family Members – Its very common for landlords to let to a family member. It is recommended a tenancy agreement is still put in place.
Subletting – Insurers generally do not allow subletting because of the potential lack of control which could lead to problems.
Landlord insurance typically covers: the property owner’s liability costs, any building insurance, any loss of rent, contents insurance and can have optional cover, which includes: accidental damage cover, legal cover and emergency assistance cover.
Landlords will often get a discount on their insurance if they insure multiple properties. Premiums can get lower and large discounts on admin fees.