Landlord insurance - the rights of leaseholders

Landlord insurance has critical importance to both, the tenant and the landlord. In the case of a leaseholder this is particularly important.


If you live in a leasehold property, the insurance is usually dealt with in 2 ways. Generally, flats leases require that the landlord insures the property. Later, the landlord is free to either recover the cost from leaseholders as a separate payment, called “insurance rent” or include it in the service charges. Leases of houses are quite different and require that the leaseholder insures the property in accordance with the instructions, provided by the landlord, who usually picks the insurance company.

If your case falls under the category, where property insurance is obligation of the landlord, the Schedule to the Landlord and Tenant Act of 1987 gives you, as a tenant, a right to require basic information associated with the insurance policy, which has to be provided by the landlord within 21 days. If the landlord fails to submit the required documents, he can be accused of criminal offence and fined up to £2,500.
If your case falls under the second category, the rights are even more extensive. The leaseholder is obliged to look for the most appropriate insurance policy. Should any misunderstanding occur between the landlord and the leaseholder, the latter has a right to apply to the court or to the Leasehold Valuation Tribunal.

For more FREE advice relating to insuring leasehold properties landlord can use the Leasehold Advisory Service.

Landlord insurance - cash back offer

Endsleigh famed for providing student room insurance are underwritten by Norwich Union. They now offer rent guarantee, landlord buildings insurance and landlord contents insurance and of course tenant insurance if you want to ensure your tenants are also covered. We particularly like their no nonsense rent guarantee insurance which guarantees a landlords rent for 12 months for less than a £100. Endsleigh are also the only landlord insurance company we know off to offer a cashbackservice on their policies. It all helps!

What sort of landlord insurance cover should a landlord get?

Landlord insurance is mainly sold by insurance brokers who sell insurance underwritten by some of the large insurance companies such as Norwich Union, Zurich, AXA.

Many landlord insurance policies are standard landlord insurance policies produced by these companies. In some cases individual insurance brokers such as the landlord insurance brokers in our brokers section have delegated authority to tweak their landlord insurance policies in order to offer additional cover or less cover in certain areas in order for them to offer useful cover extension or to reduce the premium they charge. One aspect that a landlord should use in assessing a policy is the cost per £1000 of cover. Cover costs range from £1 per £1000 upwards. Some insurers will offer very basic levels of landlord insurance cover with the option to add in specific additional levels of cover whilst others such as Alan Boswell have landlord insurance policies that offer a very generous and broad level of cover.

Do I need specialist landlord insurance?

Landlords need specialist landlord insurance. Why? Because household policies do not cover buildings, contents or the landlord for third party liabilities while their property is let out.

It’s not illegal not to have landlord insurance, although some buy-to-let mortgage lenders will insist that it is in place as a condition of the mortgage. If a landlord is prepared to accept the risk that their investment property: burns down, the tenant sues as a result of an accident at the property, or replace the roof because of storm damage, etc If a landlord is happy to take on these potential risks then landlord insurance isn’t required ( oh yes , don’t forget flooding!)

Personally, I’m not sure I could sleep at night without being fully covered with a landlord insurance policy. To my mind for landlords to take that kind of risk for the sake of a couple of hundred pounds a year is just not worth it.

Calculate rebuild costs by registering at the Association of British Insurers (ABI) website

Rentshield Direct improves tenant checking service for landlords

Rentshield Direct, the tenant checking company, has signed a five-year deal with NorthgateArinso PeopleChecking. The new service will provide an instant financial assessment of potential tenants and will flag any county court judgements (CCJs) to landlords before contracts are signed.

According to Tim Rooney, commercial director at NorthgateArinso PeopleChecking, there has been a substantial rise in CCJs over recent months as tenants struggle to meet rent deadlines.

“Just because a tenant has a CCJ doesn’t mean they should automatically be discounted,” said Rooney. “However, it’s important that landlords are aware of any potential problems and past financial history – no one can afford to lose out in the current housing market.”

The new service will halve the time the Rentshield Direct team spends checking tenant history and producing reports. PeopleChecking will be combined with online insurance services to help landlords find the most suitable tenants.

“All our team are based in the UK, rather than off-shore, and they need to spend their time as efficiently as possible,” said Gary Abrahams at Rentshield Direct. “Automating these processes will help us work much more efficiently, enabling the team to spend their time doing what they do best – helping landlords, agents and tenants get the best possible deal in a difficult market.”

Landlords can avoid TDS custodial scheme by using approved insurance scheme

Landlords should be aware that since April 06 2007 if they take a deposit from a tenant they need to either place it in a custodial scheme or they can use a landlord insurance scheme run by mydeposits

This allows a landlord to retain their tenancy deposit but also comply with the Tenancy Deposit Scheme legislation. For more information on the tenancy deposit scheme check out the Property Hawk website.

Jml-property-insurance introducer agents for Rentguard

Jml-property-Insurance.co.uk are pleased to announce that they have just been made introducer agents for Rentguard Property Insurance in the UK

The Rentguard Insurance has range of products & services covers all aspects of residential & commercial lettings as well as Owner Occupier Insurance and UK Holiday Home Insurance.

With such a buoyant rental market in the UK jml-property-insurance.co.uk are delighted to offer these products from Rentguard Insurance.

Philip Suter of jml-property-insurance.co.uk said” it makes sense to have a good choice of products for Landlords and Tenants and the Rentguard Insurance’s products are very good value for money for Landlords, Tenants and property owners”

Philip went onto say “Depending on which product you are looking for, all you have to do is click on the “Get a Quote” logo and you immediately enter the Rentguard site and can get a quote or arrange cover within seconds”.

Chirag Patel, National Account Manager of Rentguard said,” We are delighted to work with jml-property-insurance.co.uk. We know they have been very successful introducing Landlord and Tenant products since 2002 and we have excellent products which will benefit landlords and tenants UK wide. We look forward to developing a close and long lasting working relationship with jml-property-insurance.co.uk”

Rentguard is a trading brand of RGA GROUP LTD. They are Authorised and regulated by the Financial Services Authority (FSA), and adhere to the codes of practice of the Association of British Insurers (ABI) and the Insurance Ombudsman scheme (IOB). They are also members of the British Insurance Brokers Association (BIBA).