Why do I need insurance if I have already paid a bond?

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We are often asked this question by prospective tenants.

Our role in Property Management is to try and look after the best interests of all people involved so this includes both Landlords and Tenants.

We ask all out Tenants to have insurance which provides cover for accidental damage to the Landlords property (Contents). We are not by law able to force tenants to insure their own contents but it is of course sensible for them to do so or at least to take some proper advice. We do ask for the accidental damage cover for Landlords contents though because this insurance does provide additional protection for both Landlord and Tenant in cases of accidental damage.

Consider the scenario where a lounge carpet is damaged in a prominent postion by a triangular shaped burn cause by dropping an iron (we presume that no-one does actually choose to iron on the lounge carpet….or perhaps they do?). The carpet may need to be totally replaced but it is unlikely that the bond would cover the cost even if it was completely withheld.

If the insurance is in place the Tenant will make a claim on this. True they will have to pay the excess on the policy but this will be very substantially less than losing the whole of the bond. Thus the carpet can be replaced. The Landlord is happy and doesn’t need to consider any further action against the Tenant and the Tenant has reduced considerably the cost to themselves. This protects the relationship between the two parties.

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