Any responsible landlord will have insurance to cover the cost of repairs if your rented property suffers damage from the elements or because of an accident. 

However, as a tenant, there are two important things to know:

• Your landlord’s insurance does not cover your own possessions stored in or on the property
• If you cause any damage above normal wear and tear, your landlord can pursue you for the repair cost, even if it was an accident.

This means that if the property is broken into and your items are stolen or there is a storm that damages your belongings, you won’t be covered by your landlord's insurance. You’ll need to invest in renter's or tenant's insurance to protect your possessions.  

In this blog, our insurance experts will cover everything you need to know about tenants insurance, including:

• What is insurance for tenants?
• What is covered by tenant insurance?
• What isn’t covered by tenant insurance?
• Do I need tenant insurance, and is it a legal requirement?

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What is insurance for tenants?

Contents insurance for tenants or renters (also called tenants insurance) protects your contents and personal belongings. It can also protect you if you accidentally damage items that your landlord has provided. 

While your landlord will take care of building insurance – and any contents they provide if the property is furnished – it’s up to you to insure your own belongings against theft and damage.

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What is covered by tenant insurance?

Most standard tenant insurance covers all your contents against accidental damage or theft and will cover the cost of repairs and replacements.  

You should be covered if:

• Your home is broken into, and your items are stolen
• There’s a fire, and your possessions are damaged or destroyed 
• There’s a burst pipe or leak, and your items are water-damaged
• There’s a storm or flood, and your belongings are damaged

However, you will need to check the wording of your policy carefully so you know what’s included in your level of cover. Most renters insurance policies will also allow you to add optional extras, such as accidental damage cover. You can then take out additional cover for:

• Accidental damage to your landlord’s property and contents, often called tenants liability insurance
• Personal possessions that you carry with you, such as a laptop, jewellery and your mobile phone
• Legal expenses, in case your landlord takes you to court
• The cost of alternative accommodation if your rented property is being repaired (for example, after a flood).

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What isn’t covered by tenant insurance?

Most tenants insurance policies will have several exclusions, such as:

• Normal wear and tear - if your belongings are damaged over time through general use, your insurance will not cover this. 
• Single high-value items -  most policies will have a single-item limit. If you have any items worth more than this limit, you’ll need to list them separately to ensure they’re covered. 
• Possessions taken outside the rental property—if you take your possessions outside the home, they might not be covered (unless you’ve paid extra for this). 
• Theft without forced entry - if your possessions are stolen but there are no signs of forced entry or the break-in results from you leaving a door or window open, you might find your claim is rejected. 
• Business contents – if you use your rental property as a business premises, any equipment relating to your business must be covered by separate business contents insurance. 
• Unoccupied  rental properties - if your property is going to be unoccupied for an extended period (usually more than 30 days), you might need to take out unoccupied property insurance to ensure your items are protected. 
• Damage caused by pets - any damage caused by pets is unlikely to be covered by your tenants' insurance policy, so you will have to take out a separate policy specifically for your pet. Your landlord may insist on this as a condition of the tenancy or charge you a slightly higher rent to cover the extra risk.

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Do I need tenant insurance, and is it a legal requirement?

There is no legal requirement to have tenant insurance in the UK. However, without insurance, all your possessions and belongings are entirely unprotected in the event of a break-in, fire or flood. If an event like this happens, you could replace everything you own, including furniture, gadgets, appliances and clothing, which would be a considerable cost. 

Remember, although your landlord’s insurance will cover the building and any items they’ve provided, it won’t cover your personal possessions - you’ll need your tenant insurance to ensure you’re protected if a disaster strikes. 

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Deposit replacement insurance by Lets Insure

If you’re moving into a new rental property, there is lots to think about, from getting the right tenant insurance to finding enough money for your deposit. 

At Lets Insure, we offer deposit replacement insurance, which acts as an alternative to a traditional tenancy deposit. Instead of paying a traditional deposit (which could be up to 5 weeks' rent), you pay a small non-refundable fee (approximately one week’s rent). 

Find out more about the benefits of deposit replacement insurance for landlords and tenants on our site.