This question is from Anna (paraphrased to suit this format):
(To a landlord who leases his property to social housing agencies) Do you disclose to your insurer that the property is being leased to a social housing agency (knowing that it would convert your cover to a commercial policy)?
Yes. You should.
Trying to avoid the cost of a commercial policy by withholding material information from your insurer will only lead to future claims being declined (especially likely in claims involving tenant damages, loss of rent and meth contamination where the insurer will require more information about the tenancy as part of its claims process). If that is the outcome then why bother being insured in the first place?
Given that the draft interest limitation rules preserve deductibility for properties being leased to social housing agencies, that should give the landlord ample margin to foot the price of a commercial policy. If not, then we suggest the landlord go back to the drawing board to re-do his/her numbers.