Principles of Insurance

One of the main principles of Insurance is the principle of Utmost Good Faith. It is widely considered to be one of the most important principles and underpins the contract between the Insured and the Insurer. Utmost Good Faith is basically the assumption that both parties are to be completely honest and disclose any material facts that may or may not affect the risk.
 

Material facts can be many things, for example, in the case of Landlord Property Insurance; it is prudent to disclose the correct tenant type. Over the last twelve months, client’s claims have been at risk due to incorrect tenancy information being given, and most clients’ are not always aware that their policy is not up to date.

Choosing the correct tenancy is important, and it could affect any claim you make. Here at Primecover, when dealing with Property Insurance, we endeavour to advise our clients correctly and ensure they have the right tenancy type noted on their policy. If you are unsure what kind of tenant you have, here is a rough guide to defining your tenant –

Professional – This tenancy type is when the tenant is in full or part time work, and does not receive any Housing Benefit.

DSS Landlord/tenant – This tenancy type is when the tenant receives Housing Benefit and the tenancy agreement is between the tenant and the Landlord. The tenant pays the full rent directly to the Landlord.

DSS Landlord/Council – Tenancy type is the same as above, but the tenancy agreement is between the Landlord and the Housing Executive. The Landlord receives monies from the Housing Executive to pay the rent.

Student – This tenancy type is when the tenant is in full/part time education and does not receive any Housing Benefit.
 

If you are ever in doubt whether the information you are required to give to Insurers is correct, please contact us here at Primecover, as we can offer you the advice you need, to ensure your Insurance needs are adequately covered.
 

Article published on: 01/07/2011

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