Tenant versus landlord – legal battles

September 30, 2012

Landlords Insurance

A recent story* has highlighted again the sometimes fragile nature of the relationship between tenant and landlord.

In this case, the story has made national headlines due to the fact that a sporting celebrity is involved and is being sued by the landlords concerned.

No particular comment is possible on the respective positions of this case which will, no doubt, be decided by the courts in due course.

What is interesting about this is that it again indicates the age old question of what insurance for landlords is desirable?

For example, not all policies provide cover for malicious damage by tenants.  Equally, some may not offer cover for furnishings or possessions stolen or as the defendant is claiming in this case, accidentally removed or damaged etc.

Then there is the question of rental losses.  Some policies may offer no assistance at all in situations where tenants flee leaving large amounts of unpaid arrears. Others might offer some assistance in legal actions relating to the recovery of sums where the tenant’s current whereabouts are at least known.

You may find that some insurance might offer some contributions towards the cost of defending yourself in legal actions if you are sued for third party liability type damages but cover for legal costs associated with evicting tenants may not be included.

The bottom line here is that the level and nature of the cover you require might be influenced very heavily by the nature of your business.  Given that no two landlords will be identical, it means that it is difficult for anyone to provide very specific advice, in general, as to what insurance landlords might require.

The only solution to this is to look carefully at the nature of your properties and how you are letting them.  You then need to decide the specific risks you believe you are exposed to and just how important it is for you to have cover for them.

Then it becomes a question of matching your requirements against suitable policies.

Needless to say, this reemphasises the importance of reading a policy and its cover provisions very carefully before deciding whether or not it is going to be suitable for you.

 *Source:

http://www.thesun.co.uk/sol/homepage/news/4442678/QPRs-Anton-Ferdinand-sued-for-18000-after-claims-he-left-luxury-flat-in-trashed-state.html

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