20 December 2000



Sorry No Pets!

A Canadian pet insurance company has announced a new insurance policy covering tenants' liability for damage to landlords' properties caused by their pets..

By removing the exclusion of damage by pets, the company, Vetinsurance claims it intends to be a leading advocate in the debate to enable more pets to be accepted into rented properties.

The new policy is underwritten by Alliance AG, a large multi-national insurance organization operating in over 70 countries. Allianz promotes a policy to "insure risks beyond all borders."

Vetinsurance provides a covering letter for policy holders to present to prospective landlords which says:

"This responsible pet owner wants to live in your building. In order to demonstrate how committed he/she is, Vetinsurance has been bought to cover up to $25,000 in property or 3rd party liability for any damages that may be caused by a pet."

[In Canada, in this context '3rd Party Liability' is used to refer to the landlord's property. In England & Wales 3rd Party Liability' refers to property not in the legal care of the policyholder - i.e. it is not used when referring to rented property.]

The implications for prospective (Canadian) tenants is enormous. Until now pet owning tenants have had to contend with the same problems as private tenants on this side of the atlantic, where, because damage caused by pets has been considered uninsurable, most tenancy agreements specifically forbid the keeping of pets.

Animal Welfare

As a result UK rescues are left to deal with widespread animal welfare problems when pet owners find they cannot move into rented accommodation with their animals. In 1996 the Cats Protection (formerly Cats Protection League, CPL) announced that annually it takes in more than 6,600 cats due to owners going into rented accommodation where pets are disallowed.

The CEO of the CPL said at the time:

"Anecdotally we are aware that many cat owners are separated from their pets when faced with the need to find new accommodation and the cats frequently find their way to League Shelters for rehoming. It is a heartbreaking situation and one we are lobbying, alongside other animal welfare charities, to change."

UK Insurers

Last week UKPets contacted 8 UK based pet insurance companies asking them to provide cover for someone who had been forced to move out of their family home. This person was looking to move into rented accommodation with their dog, (the family's 2 year old retriever,) as quickly as possible.

We explained that a private landlord had been found who would be willing to waive the exclusion of pets clause in his tenancy agreement, providing that the owner could demonstrate that they were insured against damage caused by their dog.

None of the companies we spoke to was able to provide the cover we needed. One company, Vet Fee Protector.co.uk helpfully offered to ring around for us but eventually called back saying they were unable to help.

Most, including Petplan suggested that this cover would be available through our home contents insurance. However, Sharon O'Gorman, owner of Golden Valley Insurance and with 20 years experience in pet insurance, disagreed saying that she would not expect us to be able to find the cover we needed under a home contents insurance.

We contacted a number of property and contents insurance companies only to find that all of their policies carried the 'damage by pets' exclusion, typically stating (as in this extract from Direct Line):

"We will pay for accidental damage to the contents while in your home but not damage caused by:

i) any paying guest or tenant
ii) domestic pets
iii) uninsurable risks"

Deposits, normally the equivalent of a month's rent are not considered adequate surety by landlords for the additional risk they feel they are taking on by accepting animals into their property.

However, in the U.S. tenants and landlords can take out a 'warranty' against damage by pets.

U.S. Warranties

In July this year a U.S. company, LeaseWithPets.com , was launched offering stand alone warranties covering pet damage such as soiled, chewed or destroyed carpet; soiled, chewed or destroyed lino, chewed or scratched wood work, curtains and doors.

The warranty is available to landlords and/or tenants and the company claims that it:

"Bridges the gap between lessors and potential leases with pets. Lessors feel more comfortable renting to pet owners, thus opening doors previously closed to them and their pets."

As an additional incentive to landlords, the warranty provides a $75 refund when no damage has occured after an exit inspection.

Homelessness

In 1995 the National Canine Defence League launched the Hope Project to help with the problems of welfare in animals belonging to homeless people. The project became aware that many people who find themselves homeless with dogs are given the impossible option of either rehoming their dog or finding accommodation.

In response to this, the NCDL Hope Project initiated a national working party on pets and housing called PATHWAY. The members of PATHWAY included veterinary surgeons, major animal welfare organisations, government and local authority representatives, psychologists and housing providers.

PATHWAY published a document, 'Pets and Housing, the Way forward - Guidelines for Housing Providers'. This was sent to every local authority and member of the National Federation of Housing Associations. Following this, PATHWAY undertook research to identify the pet policies of housing providers nationally.

The NCDL are also in the process of producing companion guidelines for pet owners. These guidelines, 'Pets and People' give advice to pet owners on the major areas of pet ownership in funded accommodation.

Each Christmas, the NCDL alongside Crisis and the London Christmas Mobile Service, delivers dog items to around 200 homeless dog owners in the London area. They supply food, toys, treats, collars and leads - donated through NCDL supporters and pet food companies. NCDL volunteers are also able to offer homeless dog owners advice on dog welfare issues.

Learn By Example

The issue of housing tenants with pets in the UK could be addressed by insurers willing to look at the new models emerging in the U.S. and Canada.

Most smaller brokers who provide pet insurance also sell products covering a range of other needs including home and contents insurance. Traditional links with estate agents places them in an ideal position to exploit this gap in the market whilst providing a socially aware and much needed product.

For more information on the NCDL contact:

Clare Kivlehan at
NCDL, 17 Wakley Street,
London,
EC1V 7RQ, UK


or telephone 020 7837 0006.

You can also find comprehensive information and links to advice sites on private rented accommodation or social housing at:

Housing Today

Copyright 2000 Steve O'Malley (UKPets). This article may be reproduced with permission of the author and correct attribution to the source.