Tenants Insurance

What is Tenants Insurance?

Tenants Insurance is designed to financially and legally protect tenants and landlords for any damage or harm caused, accidental or otherwise, to any part of the rented accommodation or to persons who either live there or are guests there.

Why is Tenants Insurance needed?

As a tenant, taking out tenants insurance is necessary because tenants are legally responsible for any damage to their landlords’ property.

Many tenants make the mistake of assuming that the landlord’s insurance will cover their belongings. Any items a tenant takes into the property is their responsibility to insure.

Although tenants know that they are responsible for theirs and their landlord’s contents, only 10% of tenants have sufficient cover.

Consider the massive costs you will have to incur if you experience a burglary, flood or a fire. Replacing your clothes alone can cost thousands of pounds. If you were forced to replace everything, it will cost an enormous amount of money.

It is wiser to pay an affordable monthly sum for tenants insurance than to have the worry of forking out large sums to buy replacements. If you are renting in a high-crime area, it is definitely worth considering taking out tenants policy to protect your possessions – laptops, bicycles, televisions.

Although a normal home contents policy will give a basic degree of cover for most insured items, it is not specifically designed for tenants and you may find that when you try to make a claim, you may be unsuccessful.

We have all heard of horror stories of spilling red wine on the landlord’s carpets, or ruining a kitchen worktop with a hot pan. It is not bad enough when accidents happen, but infinitely worse when you have to pay through the nose to repair or replace these items. Protect your deposit by making sure you have adequate cover.

As a landlord, taking out tenants insurance will protect you from dishonest or unreasonable tenants who may simply refuse to pay out for the damage they have caused.

Types of Tenants Insurance

There are broadly two types of Tenants Insurance – Liability and Contents.

• Liability Insurance covers protects you or your guests from any damage caused to the building.

• Contents Insurance covers you to replace or repair your belongings if they are lost or damaged.

You can choose from a Standard Cover which covers Contents & Personal Possessions in your home or Additional Cover which insures against loss or Accidental damage to personal possessions anywhere.

If you are in shared accommodation, each tenant will require separate cover.

Some tenant insurance policies will cover additional living expenses which will come in useful if your rented property becomes inhabitable and you are forced to rent elsewhere or use a hotel. Such policies will cover you for the costs of alternative accommodation and may even cover other expenses such as hotel meals.

Buying Tenants Insurance

In the UK, you can buy tenants insurance from general as well as more specialist insurers. Many insurers now have online facilities. Use a comparison website to obtain several quotes before you make your purchase.

Tenants Insurance can cost from as little as £9 a month if you search around for a good value plan.

Here is what you should look for:

• Ensure cover for at least £2500 to £3,000 worth of contents. Make sure you insure for a realistic amount sufficient to cover the cost of replacing all your belongings, and for cleaning and repairing in the case of water or fire damage.

• Ensure both the individual and couple’s possessions can be covered within a multiple occupancy property.

• Ensure cover for landlord’s belongings including fixture, fittings, buildings and contents.

• Ensure cover for walk-in thefts

• Ensure your tenants insurance is portable so that you can take it with you if you move.

• Option to cover personal effects such as cameras, sports equipment, away from the home, for example, while away on holiday.

Tenants Insurance – Important Considerations

If you live in a high crime area, you may have to pay a higher premium.

Secure a contents insurance which will give you public liability cover. This is useful if claims are made against you by a third party, for example, a guest who has hurt himself while in your rented property.

Make an inventory of your all your possessions so that it is easier to make a claim. Keep these items in a safe place.