It was put to us by a would-be client asking how the Landlord’s insurance interacts with security deposits.
They put forward that any sort of damage caused by the client could be claimed via the Landlord’s insurance rather than taking money from the Tenant’s deposit. This was something that intrigued us and made us look deeper; To them the ‘hassle’ and ‘time’ to claim it back through an official property redress scheme seemed much more trouble.
Well, first and foremost, as any professional Agent and Inventory clerk will tell you. A Home owner’s building and contents insurance is only valid if the Landlord caused the damage.Secondly The Deposit scheme is designed for this situation and in most cases considered the first choice for home contents peace of mind. As a result most policies do not cover the property when a tenant is present. However there are special Insurance policies that cover the Landlord property while a tenant is staying there. Thusly, Third: Are you the Belt and Braces sort of person? There is nothing stopping you from having Both specialist Landlords insurance and using the Security deposit. It is, however, the law to use the Security deposit scheme.
What’s more, when claiming your insurance a detailed third party Inventory goes a long way