Landlord Law

4.3.9 Insurance

4. Property management
4.3 Tenancy management
4.3.9 Insurance
The insurance obligations of the parties should be set out in the tenancy agreement. The tenant should be made aware of their responsibilities and the scope and limitations in respect of any insurance held by the landlord in respect of the property.

Insurers should be notified of claims or potential claims at the earliest opportunity. Claim settlements should be treated as belonging to the persons suffering damage. Unless otherwise agreed, you should not deduct arrears or other payments due when passing them on to the claimant.

Any arrangements regarding payment of any excess should be clearly set out in the tenancy agreement. Agents dealing with insurance issues should be mindful of the insurance regulations on regulated activities. See the Financial Conduct Authority (FCA) website (www.fca.org.uk) for further guidance. When a claim arises it should be processed promptly and appropriately. Agents may charge for this service, depending on the terms of engagement.

Note that if you want to make the tenants liable for breach of the terms of your insurance policy (for example if this results in an increase in your premium) you must provide the tenants with a copy of your insurance policy or an extract of the relevant parts.

Otherwise the clauses will be enforceable as tenants cannot be held liable for breaching clauses when they do not know what they say.