renting a room in my house, do i need to inform the insurance company?

irishgeo · 05-01-2012 11:28AM #1

ok i am renting out a sapre room to a guy i know,

do i need to inform my insurance company?

oldyouth · 05-01-2012 12:01PM

Yep, you need to extend your policy to include liability to your tenant. You owe a higher duty of care to someone who is paying to use your house, as opposed to having a friend stay over.

It is likely that the theft section for your own contents will be affected also, to exclude theft unless involving forcible enry or exit to the premises. This is to prevent losses from a person lawfully on the premises (your tenant) doing away with your stuff. Ask them to explain in detail what amendments they will be making.

PS, you can't cover any of your tenants belongings on your policy

irishgeo · 05-01-2012 12:32PM

oldyouth wrote: »

Yep, you need to extend your policy to include liability to your tenant. You owe a higher duty of care to someone who is paying to use your house, as opposed to having a friend stay over.

It is likely that the theft section for your own contents will be affected also, to exclude theft unless involving forcible enry or exit to the premises. This is to prevent losses from a person lawfully on the premises (your tenant) doing away with your stuff. Ask them to explain in detail what amendments they will be making.

PS, you can't cover any of your tenants belongings on your policy

is it going to mean a higher premium?

oldyouth · 05-01-2012 01:09PM

It would, I'm afraid. Depending on your insurers, it could be up to 25% of what you are paying already. I'd recommend you do it, not just to protect yourself against claims made against you by your tenant, but to fail to do so could invalidate your existing cover.

Trust me, with falling investments and increasing claims, ALL insurers are strictly enforcing policy conditions where before they used to let a few minor issues slide

irishgeo · 05-01-2012 01:19PM

oldyouth wrote: »

It would, I'm afraid. Depending on your insurers, it could be up to 25% of what you are paying already. I'd recommend you do it, not just to protect yourself against claims made against you by your tenant, but to fail to do so could invalidate your existing cover.

Trust me, with falling investments and increasing claims, ALL insurers are strictly enforcing policy conditions where before they used to let a few minor issues slide

this is what i am afraid off.

irishgeo · 05-01-2012 01:33PM

just been on the phone to Zurich only an extra 20 euro over the year.

done, to be on the safe side.

oldyouth · 05-01-2012 01:58PM

Excellent result. Did you ask them about the theft aspect? They will send you a copy of the amendements they are making to your policy. Keep an eye out for anything there and come back for advice if you need it

peteb2 · 05-01-2012 02:49PM

yeah watch out. Last i saw, Zurich remove the accidental damage cover on your policy once any part of of the property is sub-let.

irishgeo · 05-01-2012 03:28PM

peteb2 wrote: »

yeah watch out. Last i saw, Zurich remove the accidental damage cover on your policy once any part of of the property is sub-let.

sigh i wonder why i bothered so.

Stealing or attempted stealing. Loss or damage:

No covered.
• while any part of the home is lent, let or
sub-let, unless entry to or exit from the
home is made using violence and force
• caused after the home is left
unfurnished or unoccupied for more
than 30 consecutive days,
• caused by a member of your household
other than domestic staff.
The first €250

13. Audio, TV and video equipment.
Accidental damage while in the home
to radios, televisions, (including satellite
decoding equipment) other audio or video
equipment and computer equipment.

Not covered
Damage:
• while any part of the home is lent, let
or sub-let,
• caused by wear and tear or gradual
deterioration, insects, vermin, corrosion,
rot, mildew, fungus, atmospheric
conditions, the action of light, any
process of heating, drying, cleaning,
dyeing, alteration or repair, misuse, faulty
workmanship or design, the use of faulty
materials, or breakdown,
• to records, audio, video or computer
discs, tapes or cassettes,
• to telephones or telephone equipment,
• caused by computer viruses.
The first €250 of each incident of loss
or damage.

oldyouth · 05-01-2012 05:04PM

They sound like bad exclusions, but they are not really. You still have theft if someone breaks in to your house by forcing a locked door or window, you just don't have it if someone climbs in through an open window etc.

The Accidental Damage restrictions are there to prevent claims for damage caused by your tenant mistreating your property. You still have Fire, Storm, Flood, Burst Pipes etc, which are the usual occurrances

irishgeo · 05-01-2012 05:20PM

oldyouth wrote: »

They sound like bad exclusions, but they are not really. You still have theft if someone breaks in to your house by forcing a locked door or window, you just don't have it if someone climbs in through an open window etc.

The Accidental Damage restrictions are there to prevent claims for damage caused by your tenant mistreating your property. You still have Fire, Storm, Flood, Burst Pipes etc, which are the usual occurrances

The theft exclusion also rules me out of cover if my house mate buggers off with all my goods as he is lawfully allowed to be there.

The accidental damage removal means that if I trip over my tv and break it, i cant claim just because i am renting a room out. i am being penalised because i am renting i dont think its fair.

ill taking this up with Zurich once the written letter comes stating the chane of terms and the ombudsman if i don't get a satisfactory answer. ( it's January and i have nothing else to do so i fancy a row)

i be better off not telling them to be honest by the look of it and ill be looking for a company that doesn't penalise me for renting a room out when renewal time comes. anyone know of one?

ronan45 · 05-01-2012 05:36PM

irishgeo wrote: »

sigh i wonder why i bothered so.

Stealing or attempted stealing. Loss or damage:

No covered.
• while any part of the home is lent, let or
sub-let, unless entry to or exit from the
home is made using violence and force
• caused after the home is left
unfurnished or unoccupied for more
than 30 consecutive days,
• caused by a member of your household
other than domestic staff.
The first €250

13. Audio, TV and video equipment.
Accidental damage while in the home
to radios, televisions, (including satellite
decoding equipment) other audio or video
equipment and computer equipment.

Not covered
Damage:
• while any part of the home is lent, let
or sub-let,
• caused by wear and tear or gradual
deterioration, insects, vermin, corrosion,
rot, mildew, fungus, atmospheric
conditions, the action of light, any
process of heating, drying, cleaning,
dyeing, alteration or repair, misuse, faulty
workmanship or design, the use of faulty
materials, or breakdown,
• to records, audio, video or computer
discs, tapes or cassettes,
• to telephones or telephone equipment,
• caused by computer viruses.
The first €250 of each incident of loss
or damage.

So whats the 20 euro for?

oldyouth · 05-01-2012 05:59PM

irishgeo wrote: »

The theft exclusion also rules me out of cover if my house mate buggers off with all my goods as he is lawfully allowed to be there.

The accidental damage removal means that if I trip over my tv and break it, i cant claim just because i am renting a room out. i am being penalised because i am renting i dont think its fair.

ill taking this up with Zurich once the written letter comes stating the chane of terms and the ombudsman if i don't get a satisfactory answer. ( it's January and i have nothing else to do so i fancy a row)

i be better off not telling them to be honest by the look of it and ill be looking for a company that doesn't penalise me for renting a room out when renewal time comes. anyone know of one?

The examples you quoted are exactly why those conditions are there. It's industry standard I'm afraid, I'm not aware of any company that treats let or semi let dwellings any differently. You've paid €20 to protect you for claims your tenant may make against you for alleged injury on the premises. In my opinion, that's good value. Speaking generally, insurers don't want to provide cover for a skanger who nicks all your stuff and disappears when your out one day or to have to pay for damage to your house if he decides to throw a wild party (not calling your tenant a skanger)

ronan45 · 05-01-2012 06:11PM

ok Let me get this straight

Not covered
Damage:
• while any part of the home is lent, let
or sub-let,

So if you have a burst pipe upstairs or you let your plasma screen fall your not covered because you are renting a room out?

irishgeo · 05-01-2012 06:52PM

ronan45 wrote: »

ok Let me get this straight

Not covered
Damage:
• while any part of the home is lent, let
or sub-let,

So if you have a burst pipe upstairs or you let your plasma screen fall your not covered because you are renting a room out?

The burst pipe would be covered alas if you drop your tv your not.

ill wait till renewal and then ill tell them he moved back out.

oldyouth · 05-01-2012 08:07PM

irishgeo wrote: »

The burst pipe would be covered alas if you drop your tv your not.

ill wait till renewal and then ill tell them he moved back out.

Very foolish if you do. Just saying.

irishgeo · 05-01-2012 08:13PM

oldyouth wrote: »

Very foolish if you do. Just saying.

why so, what exactly have i gained?

oldyouth · 05-01-2012 10:38PM

irishgeo wrote: »

why so, what exactly have i gained?

It's not what you have gained, it' s what you could lose. If you tell your insurer that the tenant has moved out, when he hasn't, you are giving your insurer an excuse to repudiate ANY claim for misrepresentation. The fact that you make an active declaration to this effect is worse than an omission of never telling them in the first place. You can't try and complain that you didn't think it was important because they told you it was by charging extra. You would be claiming a reduced premium by not telling them the truth. Open season as they would see it. The small charge and minor reduction in cover ar not a big issue in my opinion.

Otis Driftwood · 06-01-2012 12:30AM

Some insurers,FBD for example,will allow you to have up to two paying tenants at no extra charge,with no restrictions on what you are covered for.

When your renewal comes round again give them a shout OP.

Id agree with oldyouth though,better to have everything fully disclosed just in case anything ever did happen.

ronan45 · 06-01-2012 11:50AM

I suppose if you did damage something is the accessor that visits (if one does)
Will he ask for a roll call of everyone in the house and a room inspection to see if anyone is hiding in the upstairs spare rooms?

Insurance guy hears moving upstairs "HA HA ALAS A TENNANT WE HAVE YOU NOW" then does the macarena across the kitchen floor

irishgeo · 06-01-2012 12:15PM

ronan45 wrote: »

I suppose if you did damage something is the accessor that visits (if one does)
Will he ask for a roll call of everyone in the house and a room inspection to see if anyone is hiding in the upstairs spare rooms?

Insurance guy hears moving upstairs "HA HA ALAS A TENNANT WE HAVE YOU NOW" then does the macarena across the kitchen floor

i suppose its more of the fact if a flood or something else occurs , rather than the accidental damage.

irishgeo · 06-01-2012 12:19PM

FBD dont cover it either.

Accidental Damage to Contents Cover
Please check your Schedule to see if cover under this heading is operative.
No cover is applicable under this Paragraph unless it is specifically purchased by you as an
optional additional cover and unless it appears on your Policy Schedule.
It is declared and agreed that the insurance in force under Section 1B of this Policy in respect of
Contents (as defined in the Policy) extends to indemnify the insured in respect of destruction or
damage by accidental means whilst contained within the Insured’s Private Dwellinghouse at the
situation stated in the Schedule but excluding:-
a) destruction of or damage to glass, earthenware or china articles or property of light materials
b) destruction or damage occurring in any part of the Buildings which may be lent, let or sub-let
c) destruction or damage arising from wear and tear, gradual deterioration, action of light or weather
(other than storm), moths, vermin or any process of cleaning, repairing, dyeing or restoring,
mechanical or electrical defect
d) destruction or damage to jewellery, watches, furs, musical instruments, cameras, camcorders, contact
lens, spectacles, hearing aids, mobile phones, sporting guns, food, drink or plants
e) destruction or corruption of data or programs
f) chewing, scratching, tearing or fouling by pets
g) the Policy Excess.
For the purposes of the Insurance provided by this Section “Accidental Damage” shall mean
damage caused suddenly and unexpectedly by an outside force.

ronan45 · 06-01-2012 12:50PM

b) destruction or damage occurring in any part of the Buildings which may be lent, let or sub-let

PART of the building that is Sublet. Jeeps thats quite specific. So only the rooms the tennant would visit on a daily basis I guess

oldyouth · 06-01-2012 02:26PM

ronan45 wrote: »

b) destruction or damage occurring in any part of the Buildings which may be lent, let or sub-let

PART of the building that is Sublet. Jeeps thats quite specific. So only the rooms the tennant would visit on a daily basis I guess

If the tenant has access to any of the other rooms in the house, those rooms are covered by the restriction in cover. They are deemed to be part of his rental agreement

irishgeo · 08-01-2012 01:54PM

oldyouth wrote: »

If the tenant has access to any of the other rooms in the house, those rooms are covered by the restriction in cover. They are deemed to be part of his rental agreement

my tenant has access to the whole of the house, so no room is covered so and he doesnt have a rental agreement.

what exactly am i covered for now?

oldyouth · 08-01-2012 03:34PM

irishgeo wrote: »

my tenant has access to the whole of the house, so no room is covered so and he doesnt have a rental agreement.

what exactly am i covered for now?

Everything you had before except Accidental Damage and Theft unless there is a forced break in. Also you paid €20 for public liability that you owe to your tenant. You still have fire, storm, flood, burst pipes, impact, malicious damage (except by your tenant) and forcible theft.

renting a room in my house, do i need to inform the insurance company?

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