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  • Insurance

    Insurance question

    One of my properties is let to a housing benefit tenant, the insurance on this is around 50% more expensive than the property I own next door, which is let to a working tenant.

    Many people who work these days, also claim housing benefit.

    Does anyone know how the insurance industry judges his matter? Might it be the case that a tenant that has any employment, even part time, is categorised as 'working', rather than 'housing benefit'?

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    Hi Ricco,

    it it all comes down to risk and statistics at the end of the day.

    It’s similar to students - more claims occur from housing benefit tenants and students compared to working tenants. Due to this, the pool of insurers to choose from is less while premiums are higher due to claims stats - supply and demand!

    However, if you have a larger portfolio to spread the risk I.e. 10 properties with 2 let to either students or housing benefit tenants - we could look at a package deal so you are not penalised (increased premium) for the higher rates occupants .

    hope this helps - happy for you to DM me Smile



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    Hi appreciate the reply. My question really was at what stage does a 'housing benefit' tenant become a 'working' tenant? If the tenant works an average of 10 hours a week on a zero hours contract are they working? If they work 16 hours a week on a permanent contract are they working? Both of these are very likely claiming housing benefit as well. Millions of families across the country are claiming housing benefit, but are working. When applying for insurance you are simply asked if the tenant is working, or on benefits. The onus is on you as the landlord to provide an answer but this is impossible, as the correct and honest answer is that they are both. Hope that make things a bit clearer.

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    Just inform your insurer (current or asking for quote) that tenant is both working & in receipt of housing benefit (or these days more likely the housing element of UC.  There are about a million working people who also get some HB.  No doubt also a lot of people getting full HB and claiming not to work who work, cash in claw, bleedin' cheats & crooks.


    Different insurers, differrent rules. 

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    We own a portfolio and our insurer is happy for us to have either benefit or working tenants. as a landlord you may know the circumstances of the tenant when they move in but unaware of any changes as they happen. Those that have been in work and claim benefits may quickly find employment. Give them a try they are flexible.  https://landlords.alanboswell.com/stage1?utm_source=2904&utm_campaign=new-LLQ&utm_medium=webpage&utm_content=Brentwood%20Lettings

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    [Image: New-logo2.png] Manchester based investor. I buy, sell, renovate and rent investment property in East/North Manchester Wink email: mike@brentwoodinvestments.co.uk Call: 0161 681 3724