Comments on: Day 3 – Have you got proper insurance?

By: Helen

Helen — Fri, 29 Oct 2010 07:36:56 +0000

I am trying to get insurance for having one, and perhaps two, lodgers in my own home. So far, I have found it impossible to obtain this for one lodger (even though this person had lodged with me for more than six years) and impossible to find it for two lodgers. As Tess has said, not letting an insurance company know about lodgers could very well invalidate your whole buildings and contents policies – even if your claim is for something quite unconnected to a lodger. Kafkaesquely, it also seems impossible to have an insurance policy that excludes the actions of lodgers. Ergo, if a private individual living in their own homes tries to take advantage of the government’s rent a room let scheme, they cannot readily obtain insurance.

By: Lodger Landlord 21 days of tips - the first week

Lodger Landlord 21 days of tips - the first week — Sat, 02 Oct 2010 16:13:39 +0000

[...] Day 3 – Have you got proper insurance? People don’t always realise that taking in a lodger can invalidate your insurance. This tip looks at how to avoid this. [...]

By: Tessa

Tessa — Wed, 03 Feb 2010 11:15:41 +0000

I agree, it does sound unfair. BTW Have a look at this article on my Landlord Law Blog, it might interest you: http://www.landlordlawblog.co.uk/2010/01/27/fast-trak-to-the-rescue-for-social-housing-tenants-2/

By: Nick

Nick — Wed, 03 Feb 2010 11:06:12 +0000

Thanks for that. To enlarge, for a short while the CRB checks used to be done by Hastings Council on their own referrals to reduce homelessness and ensure HMO landlord safety, but this safety check has now been withdrawn on Human Rights. However, Hastings referred tenants still have the right to see my CRB by virtue of my license. Of course I could refuse to accept Council referrals but this could be construed by the Council as discrimination and possibly affect my license. It all makes insurance difficult.

By: Tessa

Tessa — Wed, 03 Feb 2010 10:58:46 +0000

Yes, I see what you mean. Probably the best thing would be to speak to your insurers. If they ask you to ask the tenant about previous convictions (this is not the same as a CRB check) then I don’t think you can be criticised for asking them – as otherwise you might lose your insurance cover.

I think there are limits on who can apply for a CRB check so you probably would not be able to do that anyway.

By: Nick

Nick — Wed, 03 Feb 2010 10:52:00 +0000

Hastings Boro’ Council at the last NLA meeting a couple of months ago, addressed us members that landlords were not permitted to request a CRB check on tenants – pointedly not those from Council referrals. At the same time Hastings Council would not grant an HMO licence to a landlord unless s/he had a CRB check first, and to be re-CRB checked on each Licence renewal date! When I stood up and queried this inequality the Officer replied that they had received a ruling, in conjunction with Police consultations, that to request a CRB check was an infringement of tenants’ Human Rights, but that the Council had a duty to prospective tenants to ensure that landlords were proven free of conviction before letting. This ruling makes me query whether I would indeed have the right to ask a prospective tenant to admit anything for my insurers, in case Hastings unlicensed me.

By: Tessa

Tessa — Wed, 03 Feb 2010 09:43:40 +0000

We look at checking prospective lodgers on Day 12. Quick comments on your questions –
1. If the worker has no other address in the UK he may have no choice but to use his lodging address for his bank account
2. Yes it probably would be prudent to check work permits for overseas lodgers

By: Mike

Mike — Wed, 03 Feb 2010 09:38:38 +0000

In the case of Bulgarian workers – should you make sure they do not use their Lodging address for opening bank accounts and redirecting mail? Would it be prudent also for the landlord to check for worek permits?