It’s not enough for landlords to have insurance; understanding the policy’s specific requirements and declaring everything accurately is crucial.
Here’s a real-life cautionary tale about a landlord who learned this lesson the hard way.
Landlord Martin* thought he’d secured the right landlord’s policy with a reputable insurance company.
He was upfront with them about renting his three-bedroom house to Sarah, whom he believed was a working professional.
But Sarah was actually a stay-at-home mum using independent means to pay the rent. And when a water pipe burst while she was abroad, causing considerable damage, things got complicated.
An investigation by the insurer revealed that not all the details about the tenant were declared correctly. This honest mistake meant Martin was liable for the £25,000 clean-up bill.
It’s crucial that you, as a landlord, understand your policy, know your tenants and have clear provisions in your tenancy agreement. Don’t let a small oversight become a massive liability.
𝐂𝐨𝐧𝐭𝐚𝐜𝐭 𝐮𝐬 𝐭𝐨𝐝𝐚𝐲 𝐢𝐟 𝐲𝐨𝐮 𝐡𝐚𝐯𝐞 𝐪𝐮𝐞𝐬𝐭𝐢𝐨𝐧𝐬 𝐚𝐛𝐨𝐮𝐭 𝐲𝐨𝐮𝐫 𝐫𝐞𝐧𝐭𝐚𝐥 𝐢𝐧𝐬𝐮𝐫𝐚𝐧𝐜𝐞.
*Names have been changed.