Insurance forbids letting to tenant on Housing Benefit etc

[LOVELYDOVEY05]

What happens if you have a perfectly good tenant and they have to claim HB due to change of circs but your insurer does not allow it?
No landlord would want to risk their insurance cover would they?
It all appears rather unfair but apparently most insurance companies are like this
So do you have to give tenant notice or what? And how will you do this when Section 21 is abolished

I have a tenant on benefits. I had to look quite hard to find insurance to cover them. I'm with Simply Business. I think they are a broker. The insurance cost a little bit more.

However, I took the insurance out as they moved in and they've always been on benefits. Zero probs with rent paid on time and actually now, given they have no employment to lose or be furloughed from,M their income is probably more secure than many.

I would phone the cureent insurer about your tenants change in circumstances. This must be happening a lot now. You don't want to be without insurance. If they won't adapt their policy, I'd ask about a get-out and refund so you can move to another insurer. Hopefully the current insurers will adapt their policy but you might have to pay an extra premium.

Have any other LLs had this too - it can't be that uncommon even in non-Covid circumstances for a tenant to become unemployed and need to go on benefits mid tenancy.