Bespoke Finance

If a tenant sets a fire, will your insurance cover it?

A recent buzz around Landlord's Social Media as one Landlord expressed shock! they were not covered for malicious damage.

A short summary is a tenant set fire to a room. They put other tenants lives at risk and police arrested them as a result.

The landlord issues a claim for the damage caused, Landlord Building Insurance has them covered?

Unfortunately not.

The landlord was told that she is only covered for up to £5,000 as this was Malicious Damage.

A discreet bit of small print in the insurance policy, means as the tenant did this maliciously and on purpose. The landlords building insurance is capped at £5,000.

The shock spreads around Landlords all checking insurance policies and finding similar clauses.

It is a common clause in most insurance contracts!

At Bespoke Finance we offer Five Star DEFACTO Insurance. Even these premium policies have a similar limitation clause.

This is because it is an OPTIONAL addon for your policy.

A case study on a 1 bed flat shows that WITH the addon it costs £240 (£22 per month), WITHOUT the addon it costs £192 (£17.68).

Landlords should always remember to check the Terms and Conditions of the insurance policy.

If your policy does not include malicious damage, call Bespoke Finance today on 08009202001.

If you are using another adviser, remember to ask your insurance broker to tick the box.

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