Insurance for loss of rental question - help please!

[TaraM]

Dear Forum,
I'm new to this but was hoping to get some assistance from someone.
I have a flat in London (ex-council) that I'm letting. Unfortunately, I've had some bad luck with a leak which as caused significant damage to the floors. This is covered by insurance which is fine and I'm happy with this.

What I'm unsure about is the issue around the repairs and loss of rental revenue. As there is a lot of repair work to be done I've agree that the tenants (who are great!) don't have to pay rent whilst the work is being done - estimated time 5 days.

The insurer has said that they will pay for this loss of rental if it is included in my tenancy agreement. My tenancy agreement (a standard agreement an Assured Shorthold Tenancy) is silent on any repairs that has to be done. I was wondering if this is covered by the Housing Act 1988. Surely tenants shouldn't have to pay if they are not enjoying the use of the flat?

I really would appreciate some help from anyone with experience on this sort of thing.

thanks
Tara

[MrShed]

So, over these 5 days you are not charging rent but they are still living in the property, correct? In this case I would assume that you cannot claim from insurance. If the property is still habitable, and obviously it is if I am right in assuming that they are still living there during this period, then you could still claim rent off the tenants. Perhaps reduced rent, dependant upon the loss of use of areas of the property. But it is not up to the insurance company to cover you in the event of you making an agreement with the tenant over and above what the law requires you to provide. If there was a term in the AST stating that if major repairs are to be carried out, the tenant can not pay rent, then yes you probably could claim. As is, you probably cant.

Could be wrong, but thats my opinion.

[mjpl]

Is there a clause in your agreement that precludes the tenants right of offset?

If not, check with your insurer if they would cover the tenant withholding rent as compensation which is their right. In this instance you may be able to recover monies