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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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Original poster

AIBU: Tenants' Liability Cover...WTF!?!

19 replies

Jolleigh · 16/08/2013 10:22

We're moving to a new house in a few weeks as we've got a baby on the way and need more space.

We've been told that a condition of all tenancies with Ryder & Dutton is to be able to provide proof of Tenants' Liability Cover. Their 'sister company' will call us to offer us a quote.

I seriously don't get what this covers. I've rented for nearly 10 years, many different properties and have never been asked for this. I don't see what else could possibly need insuring after the landlord's bricks and mortar insurance and landlord insurance, then my extremely good contents insurance and the deposit I'm putting down to cover possible damage during the course of the tenancy.

I know it's not really much cash in the grand scheme of things but as they've had the nerve to charge £190 for 2 credit checks on top of the application fee, I really do feel like I'm being fleeced for as much as possible.

AIBU getting annoyed by this? I get that landlords can sometimes get tenants from hell and need all the protection they can get but I come with great references

OP posts:

WilsonFrickett · 16/08/2013 10:27

interesting thread on it here

Ultimately it sounds like a scam - well, probably not a scam as such, but definitely a money-making exercise for the letting agent. After all, your deposit is what protects you against possible damage.

But I think they are allowed to put whatever conditions they like on their lease, unfortunately. The thread I linked to basically suggests accepting then cancelling.

Ultimately you could vote with your feet - it depends how much you want the house.

specialsubject · 16/08/2013 10:29

so go rent somewhere else where they don't insist on it. Up to you what risks you insure as long as you have the money to cover what might happen. They are covering themselves against you breaking things to more than the value of your deposit.

Or get a quote from somewhere else. My last cover as a tenant included liability and accidental damage to the landlord's property, and the insurance in total was a few pounds a month.

the credit check and application fees are unregulated, like the letting agency business. This isn't good for anyone.

Feminine · 16/08/2013 10:29

I think it sounds crazy! you have already paid a fortune for your credit checks! and I presume you have great references from renting so long!

I don't know what the answer is?

hevak · 16/08/2013 10:31

I'd do a bit of research into exactly what "tenants liability cover" actually is - I've never heard of it. Just googled it and the first (non advert) link is this

Depending on what you are quoted by the 'sister company' then I would suggest shopping around for the cheapest possible cover! It looks like the tenants liability cover is supposed to pay the rent if you lose your job, as well as insure the landlords furniture - though if you have contents insurance surely that covers it? Also, if you have income protection then that will cover your rent if you lose your job?

Sounds like they want their 'sister company' to earn a bit of money - so I'd thwart them and buy it elsewhere!

I agree it's pants though. Really suspect.

Emsmaman · 16/08/2013 10:33

We had that in our current lease. Out of principle we refused to use the "recommended" insurer and got contents insurance with Admiral instead. Direct Line also do contents insurance with it. Presume you would have contents insurance anyway, it doesn't have to mean you will end up paying more annually if you find an insurer that includes it as a matter of course.

Come to think of it, we never had to provide proof, we just emailed them saying we had sorted out the cover as requested.

I'm sure it's just a way of them making extra commission as they have to "recommend" a specialist insurer.

DontCallMeDaughter · 16/08/2013 10:33

I've been a landlady and I had my own "landlords insurance" which covered accidental damage to my fixtures and fittings... I have never heard of tenants being asked to provide this. Wilson's link has some good advice - buy the insurance online, prove you have it, and then cancel it within the cooling off period. Definitely do not buy it from the sister company.

Original poster

Jolleigh · 16/08/2013 11:06

I've managed to get a few quotes online for it now. It's cheap but definitely leaves a sour taste in my mouth. I have every type of insurance I'd have imagined someone in my circumstances could possibly need!

Certainly will not be going through the sister company in case we do as the thread says and cancel after we've provided the necessary proof. And of course...out of principle!

I'd be interested so see if there are any landlords who see this thread who can genuinly tell me what benefit this cover has given them in the past when a tenant came with great references...

OP posts:

Original poster

Jolleigh · 16/08/2013 11:11

To give some clarity by the way...this is an unfurnished house I'm starting a tenancy on...the oven is covered under my contents insurance (this is the only appliance they're supplying) so I can only imagine the cover is for the kitchen counter tops and the bathroom suite. Certainly not enough there to justify additional cover up to £2.5k!

OP posts:

Original poster

Jolleigh · 16/08/2013 11:12

Emaman - good to know Admiral do it...we may get a discount as our car insurance is through them

OP posts:

teacher123 · 16/08/2013 12:34

Our current estate agent tried to insist on this. I scanned in our contents cover insurance documents, emailed them over and said 'this is what we have' and they accepted it without quibble.

Jan49 · 16/08/2013 12:35

Isn't it just liability insurance which is included in your Contents insurance? So they just need to know that you have Contents insurance and they are trying to get you to buy their recommended one?

I'm renting and was asked to provide proof that I had Contents insurance before the tenancy could go ahead. I pointed out that this would mean switching my existing insurance to the new address before I'd actually definitely got the tenancy and moved my belongings. Then they said they didn't bother with that any more and it was up to me if I had Contents insurance or not.

I don't think your Contents insurance will cover the landlord's belongings, so the oven won't be covered as contents, but your liability if you damage it will be covered, which comes down to the same thing. Your liability could go well beyond scratching a kitchen surface. Things like if you accidently burnt the house down and it set fire to the rest of a terrace. So a deposit wouldn't be enough to cover the risk.

EllaFitzgerald · 16/08/2013 13:19

It's included in the policy booklet I've just got through from Nationwide with the renewal of our household insurance. It's titled 'Your Liability as a Tenant' and covers you for accidental damage to underground drains, pipes etc that provide services to the building, accidental damages of sanitary fittings, accidental damage of fixed glass and damage to the building due to one of a list of incidents.

I didn't notice it in the policy booklet last year.

specialsubject · 16/08/2013 14:04

the landlord should have cover if you lose your job and can't pay the rent, if you decide not to pay the rent and wait to be evicted and if you trash the place. Obviously you don't insure against these things.

(not saying you will do any of this - but people do)

BTW the house presumably has carpets/floor coverings? These are also landlord's contents.

Original poster

Jolleigh · 16/08/2013 14:07

Yep, does have carpets. I had thought that damage to these is what the deposit covers. Not sure why I'd need this cover AND a deposit.

OP posts:

FredFredGeorge · 16/08/2013 14:25

Jan49 Surely you would need to negligently burn down the adjacent properties, simply accidentally doing it would not make you liable...

Jan49 · 16/08/2013 14:40

Fred, I think if the fire started from your home whether it was your carelessness or a fault you couldn't know about, the insurance covering the house would pay out for the other houses. If you're a tenant, The landlord's building insurance would pay out but might claim it back off the tenant/tenant's insurance if the tenant was to blame. Or the neighbours would claim off their insurers who would then claim it back from the insurers covering the house where it started.

Jolleigh, the deposit is quite a small amount compared to the potential cost of the damage you might do.

FredFredGeorge · 17/08/2013 12:22

Jan49 Exactly, only if the tenant was to blame - hence accidentally burning down a house would not make you to blame. You would have to actually be at fault. And given the difficulty of proving the cause of fires, it's actually pretty unlikely.

Jan49 · 17/08/2013 14:47

Lots of fires are caused by things like chip pans, aren't they? So the tenant would be to blame in that case. But fire is only one of the things that can happen. A tenant ought to have contents insurance anyway - you need insurance for the many things that might happen. It might be that the items that need repairing or replacing cost a few thousand rather than tens of thousands of pounds, but for many people a few thousand would be beyond their budget.

AmandaHoldenmigroin · 17/08/2013 17:39

It's a pretty normal thing where I live. It covers them if you accidentally leave a tap running etc.

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