Specialist insurance cover is the most effective way of protecting not only agents and landlords in the event of problems, but is also the best method to protect tenants' deposits too.
That is the view of Kevin Paterson, managing director of tenant referencing and insurance provider, Sourcelet. He is responding to recent research saying that tenants' alleged mis-use of everyday household items such as irons and flooring contribute significantly to insurance claims - and implicitly put their own deposits at risk.
A standard contents policy taken out by a tenant will not insure them against their liability under the tenancy agreement for accidental damage to the landlord's contents, fixtures and fittings. This could mean they're forced to give up part or all of their deposit he warns.
Paterson says contents insurance typically provides cover for up to £30,000 of lost contents, the cost of replacement locks, cover for bicycles, equipment and so on - but a specialist deposit-protection add on' could offer an additional £3,000 of cover, specifically to protect the tenant's deposit when it comes to check-out time.
As it helps ensure the tenant will get deposit monies returned in full at the end of their tenancy, and also provides the landlord with peace of mind that most accidental damage will be covered, it's a win-win for both parties he says.
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Comments
It's clearly a good thing to have insurance, especially when renting out to tenants. One bad tenant, can really take a financial toll! Not really very hard hitting news, but still important none the less.