What home insurance do I need if I rent?

Do I need home insurance if I rent?

Home insurance usually bundles together two separate products: buildings insurance, and contents insurance. If you rent a property, your landlord is responsible for buildings insurance and any contents they provide as part of the lease; but you’ll need your own contents insurance that covers the items you own.

You’re not under any obligation to take out a contents policy for your possessions. However, if you don’t have cover, you won’t be compensated for any items that are damaged or stolen. Even if your landlord has contents insurance, remember that this only covers the items they own and have listed on the policy.

If you house share with other tenants, you’ll each need your own policy (unless you all agree to take one out together).

What does tenants insurance cover?

Your tenants insurance policy will cover the same sort of events as standard homeowners contents cover, such as theft and damage caused by flood, fire or vandalism.

You’ll need to bear in mind that what’s specifically covered will vary according to each insurer’s own terms. Broadly speaking, tenants insurance combines:

Tenants contents insurance

This insures the items you own. It includes any furniture you bring to the property, kitchen utensils and equipment, as well as everyday possessions like pictures, books, rugs and clothes.

Tenants liability insurance

This covers accidental damage you cause to any of your landlord’s fixtures and fittings. Without tenants liability cover, it’s likely that the cost to repair or replace damaged items will come out of your deposit, which could leave you out of pocket at the end of your tenancy.

Personal possessions insurance

Policies that include this will cover belongings that you take with you while you’re out and about. It can include items like your smartphone, jewellery, iPad or laptop.

What other features can I add to my tenants insurance policy?

Most insurers will give you the option of adding on additional features. This includes tenants liability and personal possessions cover if it isn’t already within the policy, for example:

How much tenants insurance do I need?

Some levels of cover will be set by your insurer, for example, personal possessions cover may be set at £1,000. Similarly, tenants liability and legal expenses is also typically set by the insurer. If you need more or less cover, you can of course discuss this with your insurer but asking for higher levels is likely to increase your premium.

When it comes to tenants contents insurance, it’s up to you to work out the value of your belongings and agree an amount (the sum insured) with your insurer. Most insurers will offer varying levels of cover so you’ll be able to find a policy that fits your needs.

Another point that is absolutely crucial to consider is whether or not you choose an indemnity policy or a policy that offers ‘new for old’.

What is an indemnity policy?

An indemnity policy in home insurance is when your insurer only compensates you with the current value of an item, not its value when you bought it. So, if a £1,000 sofa you bought four years ago was damaged in a flood, you’d only get what it was worth now, which could be as little as £300.

What is new for old contents insurance?

As the name suggests, these policies will replace the items you claim for with brand new ones (or pay out the equivalent amount).

New for old insurance policies do cost a little more than indemnity policies but they can represent better value for money if you end up making a claim.

Can I buy short-term renters insurance?

Yes, if you’re only renting for a few months, you shouldn’t have too much issue finding short-term renters insurance.

How much is renters home insurance?

What you pay really depends on the policy you choose, what it includes, and the level of contents cover you need.

If you’ve made a recent claim, this can also push up your premium because as far as insurers are concerned, this increases the risk of another claim being made. Particularly if you claimed because of something that could happen again but is out of your control, such as theft or flood.

While cost is an important consideration, it’s also important to make sure you’re getting value for money. After all, without the safety net of your tenants contents insurance, it would be up to you to cover costs if something unexpected happened. So, to help you find affordable insurance, we’ve joined forces with QuoteZone to bring you a range of quotes to choose from.