Agent has invalidated my buildings insurance through mismanagement?

Agent has invalidated my buildings insurance through mismanagement?

10:41 AM, 6th February 2023, About A year ago 5

Text Size

Hello, My tenant of 5 years recently ended up in hospital for 3 months. My building’s insurance stipulates that the property cannot be empty for more than 31 days in a row.

The tenant’s family informed the agent what had happened, and a family member visited the property occasionally, however no-one was staying there.

The agent did not inform me so I could not make arrangements with my insurance company or inform them.

In my opinion, they have invalidated my buildings insurance and this amounts to gross mismanagement.

There was also a very small fire caused by a faulty oven.

If the property had burned down, my insurance company would have grounds not to pay out.

I want to terminate my contract with the agent immediately for putting my property at risk.

However, the agent is demanding a £600 exit fee.

I asked my tenant to pay me direct whilst I dealt with the fallout.

The agent is now threatening both of us with breach of contract.  The agent is a subsidiary of a large estate agent so have a legal arsenal behind them.

Where do I stand and what are my options?

Thank you,

Bobo


Share This Article


Comments

Blodwyn

10:57 AM, 6th February 2023, About A year ago

I regret there are no easy 'Quick-Fit' solutions. Get sound legal advice and remember the cheapest advice is very seldom the best!

Judith Wordsworth

11:47 AM, 6th February 2023, About A year ago

Was the property technically empty as had all your tenant's possessions in there and your tenant was paying the rent and presumably all the Council Tax due and the utilities?

All depends on what your insurance documents define "empty" as I would have thought.

Colin Mckeown

12:39 PM, 6th February 2023, About A year ago

You need to clarify if the insurance meant unoccupied or empty as they are not the same. Sacking an agent should only involve giving notice without any fee, but if your agency agreement says otherwise its sharp practice. Good luck.

Puzzler

14:21 PM, 6th February 2023, About A year ago

Provided someone was looking in every couple of weeks or so the insurance should not be an issue. The fact that no-one was actually living there is unlikely to be a problem.

Graham Bowcock

15:22 PM, 6th February 2023, About A year ago

In terms of the exit fee - what did you sign up to in terms of business?

Whilst the agent may be careless, have they actually created a problem for you?

We had a flood in a house that a tenant had vacated and not left the heating on. It gave me a sleepless night or two, but the insurance paid up as the tenancy was still legally in existence (I had not taken the keys back).

You don't nessarily have the right to enter the property once let, although good communciation all round would have ensured some mechanism for regular inspections.

Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership

or

Don't have an account? Sign Up

Landlord Tax Planning Book Now