Property insurance – Change of tenant circumstance?Make Text Bigger
I am just in the process of renewing my property insurance. I have three cottages in a terrace, all identical and the renewal cost is £110.00 each.
However in my discussion with the broker he asked me if all the tenants were still working. I told him that one tenant was now retired so he said in that case the cost would increase to £117.00. When I questioned this he explains that every time a tenants circumstances change I should inform the insurance company.
I must admit that each time I renew I am asked about the tenants circumstances, but never gave it much thought. I then asked if one of the tenant lost his job and had to claim benefits what would be the extra cost, it then becomes even more complicated.
He said if the council pay the tenant then the tenant pays me the cost would be £127.00, but if the council pay me direct then the cost would be £215.00 to be adjusted pro-rata, also a refund would be given if circumstances changed the other way.
When I explained that some tenants lose their job and don’t tell the landlord, but claim benefit where does that leave me if there is an incident, he said if you definitely didn’t know you MAY be ok.
This got me thinking of all sorts of scenarios like if the tenant loses his job, claims benefit then finds another job a few week later I would need to inform the insurers each time.
I only have a small portfolio, but it must be a nightmare for people with lots of properties. In thirty years of being a landlord I have never come across this before.
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