An A to Z list of what you should know about Landlord’s Responsibilities and Insurance for residential let properties, let under Assured Shorthold Tenancies.
ABI
The Association of British Insurers.
The ABI represents the collective interests of the UK’s insurance industry. The Association speaks out on issues of common interest; helps to inform and participate in debates on public policy issues; and also acts as an advocate for high standards of customer service in the insurance industry. The Association has around 400 companies in membership. Between them, they provide around 90% of domestic insurance services sold in the UK. ABI member companies account for almost 15 per cent of investments in the London stock market.
Find out more by visiting their website www.abi.org.uk/
Accidental Damage Cover
An addition to Standard Insurance Cover (if your cover has been extended to include such cover). Damage caused suddenly and unexpectedly by an outside force.
Annual Safety Checks
Under the Gas Safety (Installation and Use) Regulations 1998 all gas appliances and flues in rented accommodation must be checked for safety within 12 months of being installed, and thereafter at least every 12 months by a CORGI registered engineer.
Assured Shorthold Tenancy Agreements
As described in The Housing Act 1988, and as amended by the Housing Act 1996, an assured shorthold tenancy is a tenancy which offers the landlord a guaranteed right to repossess his property at the end of the stated term.
In fact, it does not necessarily have to be 'short'; assured shorthold tenancies set up after 28 February 1997 can be for any length of time the landlord wishes to offer. The assured shorthold has the following important features:
1. It is now the automatic or default form of tenancy for most residential tenancies
2. The landlord has a right to get his property back at the end of the tenancy (although a court can still not award possession during the first six months if a tenant refuses to leave).
N.B. Prior to February 28 1997, the first tenancy had to be for a fixed period of at least six months; with no power for the landlord to terminate the tenancy before this time, and the landlord was required to serve a Notice of Assured Shorthold tenancy on the tenant in the proper form.
The landlord and tenant can freely agree the rent but the tenant does have the power in certain circumstances to refer the rent to the rent assessment committee.
The Housing Act laid down some important requirements for assured and assured shorthold tenancies. Some of the key requirements are:
1. the tenant is an individual
2. the dwelling is let as separate accommodation
3. the dwelling is the tenant's main or principal home
There are a number of important exclusions (i.e. tenancies that cannot be assured or assured shorthold):
1. Lettings to companies
2. Lettings at no rent, low rent or high rent (over £25,000 per annum)
3. Holiday lettings
4. Tenancies granted by a resident landlord (a landlord who lives in the same property as the tenant)
5. Tenancies of property let with more than two acres of agricultural land, or an agricultural tenancy.
6. Tenancies entered into before 15 January 1989, or a tenancy that was previously a protected tenancy.
Bonds
Security bonds (deposits) are recommended by most Letting Agents. The recommendation is that when letting a property a bond (or deposit) of one months rent is paid by the tenant and held in a designated Client Account. The money could only be used to cover agreed losses incurred by the Landlord, such as non payment of rent or breakages.
Buildings (Definition for Insurance Purposes)
The Home, swimming pools, ornamental ponds and fountains, hard courts, terraces, patios, drives, footpaths, walls, fences, gates, hedges and fixed tanks providing fuel to the Home. Also included are fixtures, fittings and decorations. These must all be at the insured address shown on an insurance policy schedule. Cover for Buildings is arranged on a reinstatement basis.
Buy to Let Insurance
Buy to Let insurance is exactly the same as Residential Landlord’s insurance. Buy to Let is a terminology used by many Banks and Building Societies and other Lenders to describe the type of mortgage required, which also clearly described exactly to what use the property was to be put.
Claiming
If you wish to make a claim under a policy which was arrange by us.
If the claim is as a result of a crime, i.e. burglary, theft, malicious damage, please immediately inform the Police and obtain a crime report number. Take whatever reasonable steps are necessary to secure your property and avoid further damage. Retain any invoices, receipts for emergency work carried out to your property. Notify us of the circumstances immediately, or in any case as quickly as possible, after the event.
Please telephone 01603 786800 quoting your policy number. Alternatively please write to Smith & Pinching General Insurance Services Limited, 295 Aylsham Road, Norwich NR3 2RY or email household@btinternet.com.
Cleaning
At the commencement of the tenancy the property must be in a thoroughly clean condition, and at the end of each tenancy it is the Tenants' responsibility to leave the property in a similar condition. Where they fail to do so, cleaning can be arranged at their expense.
Complaints
It is every company’s goal to give excellent service to all their customers, but occasionally things do go wrong. Insurance Companies and Insurance Brokers take all complaints they receive very seriously and aim to try and sort out all problems as quickly as possible. They start off by acknowledging a complaint in writing normally within a matter of a couple of days. They will try to sort out the complaint quickly but if the complaint is something that requires more detailed information or enquiries, they will write with an update and give an expected date of when they feel they can respond. At the end of the day, if you remain unhappy at whatever decision has been made, you have the right to refer the matter to the Financial Ombudsman Service (FOS). You can write to the FOS at: Financial Ombudsman Service, South Quay Plaza, 183 Marsh Wall, London, E14 9R.
Contents (Definition of Landlord’s Contents)
Household items that You own or that You are legally responsible for. The definition of Contents does not include such items as documents of any kind, Motorised Vehicles, aircraft, boats, boards and craft designed to be used on or in water, caravans or trailers, and the parts, spares and accessories of any of these. Also, any part of the structure of Your Home including ceilings, wallpaper and the like; any item used for business or professional purposes and any living creature. Specifically excluded is any property insured by any other insurance policy. Cover for Contents is normally arranged on a new for old basis.
Council Tax and Utility Bills
You or your Letting Agent should arrange for the transfer of Council Tax and utility accounts to the Tenant. Meter readings should be taken, allowing closing gas, water (if metered) and electricity accounts to be drawn up. Some service providers it should be noted however, such as British Telecom, require instructions directly from both Landlord and Tenant.
We hope you have found these notes helpful but please note that they are for guidance only. We do not and can not accept any responsibility for any errors or omissions. You should always seek professional advice if unsure on any matter and refer to your actual insurance policy documents for full terms and conditions of your cover. You should always make sure that you fully understand what you are insured against and more importantly, what you are not insured for.
