Home insurance isn't just for homeowners. Renters also need cover for their possessions and to protect themselves. Usually this is provided by tenants' contents insurance and tenants' liability insurance.
How does tenants' insurance differ from home insurance?
Tenants' contents insurance, sometimes called renters' insurance, is similar to standard contents insurance. The same things are covered: protection for your belongings against events such as theft, or damage due to fire, flood and storm.
Standard contents insurance doesn't usually cover loss or damage due to deterioration, rot, and wear and tear.
Policies aimed at tenants might additionally provide cover for tenants' liability. Even so, some standard contents policies include limited liability cover as well.
What you don't need to worry about is buildings insurance – that's the responsibility of your landlord as the owner of the property.
What is tenants' liability insurance?
As a renter, you or your guests could cause accidental damage to the property, and you might be liable for it in the contract with your landlord.
Tenants' liability insurance would cover the cost of repairing or replacing items that you're liable for. And if you have to go to court with your landlord, liability insurance can often cover that as well.
You may be required to take out liability insurance as part of your contract, so always check whether your standard contents insurance already includes it.
What does tenants' insurance cover?
Contents insurance for tenants covers your own:
- valuables
- gadgets and tech items
- personal belongings
- money
Whereas tenants' liability insurance covers damage to items owned by the landlord, such as their:
- furniture and furnishings
- fittings
- appliances and household goods
- carpets
Do I need tenants' insurance?
Tenants' contents insurance protects your personal property, which is unlikely to be covered by your landlord's insurance.
So it's worth taking out either a standard or a tenants' contents policy, especially if you share the home with other renters. Look out for exclusions when sharing a house, such as a claim for theft must be supported by evidence of forcible entry.
Liability insurance can ensure you don't run into a problem with your landlord if an accident happens, or through normal wear and tear on the property.
Published 10 February 2022
Author: The AA
