Landlords, alongside ensuring that your properties are protected with the right insurance, you should make sure that your tenants have adequate cover in place, too.
It may now be more than three months since thousands of homes in Wales were hit with severe flooding at the hands of Storm Callum, which inflicted some of the worst flooding for 30 years on some parts of the country, but many households are still facing the distress of being flooded.
A number of owners of properties damaged by the flooding are still reportedly struggling to pay for the clean-up, while some private tenants cannot afford to replace the contents that were ruined by the water.
It’s every tenant’s worst nightmare: an incident that results in all of their belongings being severely damaged. But, while in the event of flooding, or any other major incident, the landlord is responsible for the building, plus any of their fixtures and fittings inside, they are not accountable for the contents belonging to the tenant.
Our Landlord Insurance policy includes 40 essential covers for the buildings and landlord’s contents of a rental property, but all tenants must be aware that, while their landlord’s cover may protect the rebuild costs or repair the physical structure of the property, it will not cover replacement of any contents belonging to the tenant that may have suffered loss or damage.
Instead, it is advised that tenants take out specialist contents insurance to protect their own goods.
The importance of tenant contents insurance should not be underestimated, and landlords should make this clear to their tenants, as failure to properly insure their belongings could have devastating consequences for them.
Although contents insurance is not a legal requirement, some landlords do insist that a tenant liability insurance product protects their fixtures, fittings and contents.
If a landlord’s furniture, fixtures and fittings were damaged beyond reasonable wear and tear while in the tenant’s care, then the tenant may be liable for the cost of replacing them. This could mean losing part or all of their tenancy deposit, which they are likely to need for their next rental property.
But, if the tenant is adequately covered with liability insurance, then this would, in most cases, protect their deposit, given that these policies usually include cover for the landlord’s property, including fixtures and fittings.
Without having contents and liability insurance in place, tenants face significant financial exposure, which could cost them dearly in the event of loss or damage.
Landlords, this New Year, make sure that your tenants have adequate cover in place.