Benefits tenants and the effects on landlords insuranceMake Text Bigger
We have one buy to let property and a friend mentioned in passing that our landlord insurance policy may not be valid on that property if the tenants are claiming unemployment benefits.
Having contacted my insurance brokers they confirm that that is the case and want to charge us £236 for another policy.
I spoke to our tenant and he is working part-time but “not officially”.
So back to the broker again and they said if he is working up to 16 hours a week and claiming working tax credits or claiming housing benefit then the policy that is in place will cover him.
I imagine his comment about “not officially” means that he is not paying income tax, because we do know he is working part-time at a residential care home.
In theory, he is a “carer” for his sick wife.
Therefore, would you pay the extra £236 to ensure the correct cover if you were me?
He is, in fact, an exemplary tenant. The house and garden have never been so well cared for and he has paid his rent on the dot for the last five years with no problems whatsoever.
Any advice please?
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