If you live in a rental property, you may think that you do not need insurance because your landlord's insurance should get you covered. But whenever there is any disaster or theft that damages your contents, you will find out that it doesn't work like that. It is because landlord insurance UK provides cover for the building and contents of the landlord, not the tenants. So if you want to stay safe as a tenant, you must purchase a tenant insurance policy. To keep you up to date and in the loop, we have gathered all the information that you should know about tenant insurance.
What Is Tenant Insurance?
Tenant insurance is a type of property insurance designed to protect the tenant's contents and liability claims. It does not cover the building or fixtures because it is the responsibility of your landlord to protect the building. Renter's insurance policy is a smart investment as it protects your belongings from theft and damage due to fire, storm, flood, burst pipe, subsidence and water leaks. Some policies also cover the cost of alternative accommodation if the property becomes uninhabitable due to any reason.
Do You Need Tenant Insurance?
It is not a legal requirement and is totally up to you whether you want to purchase tenant insurance or not. However, if you want to protect your belongings, you must have an insurance policy in place if any unexpected thing happens. Sometimes it is a requirement by your landlord to show proof of tenant insurance. Moreover, it ensures that you would not be left out of pocket if any of your content is damaged or stolen. Your insurer is responsible for covering the repair or replacement cost of these items.
What Does Tenant Insurance Cover?
The type of cover varies with the insurer you choose. Typically it includes the following coverage:
Personal Property Cover includes cover for your personal belongings such as furniture, clothes, electronic appliances, luggage and jewellery. In addition, it covers the cost of repair or replacement in case of damage or theft.
Liability Coverage If you accidentally cause damage to your landlord's property or if someone gets injured at your property, you may be sued in court. Tenant insurance can protect you by paying the legal expenses and compensation costs up to a certain limit.
Additional Living Expenses If any disaster such as flood or earthquake hits your property, leaving it is uninhabitable. Your insurance will provide you with some money to pay for temporary living.
You can also add additional cover such as accidental damage cover, malicious damage cover and cover for contents when you are outside your home.
How Much Does Tenant Insurance Cost?
While the cost of tenant insurance varies from insurer to insurer, on average, it costs £97 to £135 per year in the UK. Insurance premium varies depending on the type of cover you choose, the value of contents, location of the property, claim history and security of rented property. So if you want to get cheap tenant insurance, you must shop around and make price comparisons. You can reduce your insurance premium by paying annually instead of monthly, improving security and choosing extras carefully.
When you have tenant insurance in place, it will give you peace of mind that you are financially protected in unexpected events.