Tenant Related Policy Features Explained

Loss of Rent Cover

If a property becomes uninhabitable as a result of an insured event, such as a fire, flood, storm damage or significant structural issue, tenants may need to vacate while repairs are carried out. During this period, rental income from the property may cease, which can create a financial gap for the landlord.

Loss of rent cover is a policy feature that may help protect against this loss of income for a defined period while the property is being repaired and made ready for reoccupation. The duration and amount covered will depend on the terms of the policy and the insurer.

It is important to note that loss of rent cover is typically tied to an insured event under the policy, it would not ordinarily apply where a property is unoccupied for other reasons, or where a tenant simply stops paying rent. Tenant default cover, discussed in the next section, is the relevant feature for that scenario.

Tenant Default Cover

Tenant default cover is designed to help protect landlords against financial loss where a tenant falls into rent arrears, for example, following an unexpected change in their circumstances such as job loss or long-term illness. Where a valid claim is accepted, this type of cover may contribute towards the unpaid rent, subject to the terms and limits of the policy.

The conditions under which a tenant default claim may be accepted can vary between insurers. Policies typically require that the tenant is in a minimum level of arrears before a claim can be made, and many insurers will require that adequate tenant referencing or credit checks were carried out at the start of the tenancy as a condition of cover. It is worth discussing these requirements with a broker before arranging this feature, as eligibility criteria can differ between providers.

Tenant default cover may also include or be available alongside legal expenses cover to help with the cost of eviction proceedings where a tenant refuses to vacate the property. The availability of this will depend on the policy.

Landlord Emergency Repair Cover

As a landlord, you have a legal duty to ensure the properties you let are safe and fit for habitation. Where an emergency arises that affects the habitability or safety of the property, such as a plumbing failure, heating breakdown, loss of power supply, or a security issue with doors or windows, arranging a prompt repair is important both for the tenant’s wellbeing and to fulfil your obligations as a landlord.

Emergency call-outs can be costly, particularly outside of standard working hours. Landlord emergency repair cover is a policy feature that may help contribute towards the cost of emergency repairs in these circumstances, depending on the insurer and the specific situation. Common scenarios that may be covered include:

•       Plumbing failures, including burst pipes or loss of water supply
•       Heating system breakdowns, particularly during colder months
•       Loss of power supply to the property
•       Pest infestations requiring urgent attention
•       Security issues affecting external doors or windows

The scope of emergency cover, and the circumstances in which it applies, will vary between policies. It is worth discussing this with a broker to understand what situations would and would not be covered, and whether a 24-hour helpline or approved contractor network is included.

Accidental Damage Cover

Accidental damage cover is a policy feature that may help towards the cost of repairing unintentional damage caused to the property or its contents during a tenancy. Day-to-day accidents, such as a spilled drink staining a carpet, a broken window, or damage caused by a DIY attempt, can result in repair or replacement costs that add up over time.

This type of cover is distinct from general wear and tear, which is not typically covered by insurance. Accidental damage cover relates to sudden, unintentional incidents rather than the gradual deterioration that comes with normal use of the property.

The level of accidental damage cover available, and whether it is included as standard or as an optional add-on, will depend on the insurer and the policy. Some policies may distinguish between accidental damage caused by the landlord and that caused by tenants, so it is worth confirming the details with a broker when arranging cover.

Alternative Accommodation Cover

Where a property becomes uninhabitable as a result of an insured event, and the tenancy agreement includes a provision to house tenants during the period of repair, the landlord may be responsible for meeting the cost of suitable alternative accommodation. This can be a significant expense, particularly where repairs take weeks or months to complete.

Alternative accommodation cover is a policy feature that may help contribute towards these costs where they arise as a result of an event that is covered under the policy, such as fire, flooding or storm damage. Cover of this kind would not typically apply in circumstances where a property is unoccupied or uninhabitable for reasons unrelated to an insured event.

The duration for which alternative accommodation costs may be covered, and any applicable limits, will depend on the insurer and the policy terms. A broker will be able to clarify what applies under a specific policy and whether this feature is included or available as an optional extra.