We have been contacted by a number of agents with regards to the insurance clauses in their tenancy agreements and in some cases their terms of business.
We understand that a well known landlord insurance company is suggesting that some of our clients need to amend their terms of business and tenancy agreements in line with the office of fair trading (OFT) guidance.
The clause that is causing the problem relates to the insurance the tenant is advised to obtain. PainSmith Solicitors documents advise tenants that they should obtain insurance and warns them that the landlord insurance will not cover their belongings. The clause is therefore not unfair as the tenant is not forced to obtain insurance.
The guidance that the insurance company is referring to was published in 2005 therefore we are unclear as to why this has been raised by them now however, if you are using PainSmith Solicitors documents and assuming that the clause has not been amended then you are all advised that the clause complies with the OFT guidance and as such no papers need to be sent to the insurance company for them to “check”.