If you’re living in rented accommodation, you might think the responsibility of taking out insurance solely falls on your landlord, but that’s not quite the case — at least not when it comes to your possessions and the cost of the damage you may cause to the property.
That’s why most renters, get tenant liability insurance.
But, what is tenant liability insurance and is tenant liability insurance worth it?
Let’s find out.
Liability insurance for tenants is a type of insurance that covers renters for any accidental damage they (or their guests) may cause to their landlord’s property, like spilling a drink on a fitted carpet or accidentally breaking a window.
Also known as tenancy liability insurance, it’s rarely offered as separate insurance and usually comes as part of home contents insurance.
This is different from building insurance, which is bought by the landlord, to cover the cost of damage in case of fire, subsidence, and similar incidents.
This type of insurance isn’t a legal requirement in the UK but it’s an excellent option (if you can afford it) to protect yourself from any unexpected expenses, including deductions on your security deposit (as it works as tenants accidental damage insurance) and potential deposit disputes at the end of your tenancy.
It can save you from having to shell out a big sum of money at once if something does happen and act as a safety net for your financial plans.
Whether or not tenant liability cover is worth the cost will depend on your situation. Getting a quote from various providers can help you compare the value.
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According to the Association of British Insurers, the average cost of renters insurance, which includes tenant liability and content insurance, is around £135 or £2.60 a week.
This cost varies depending on the amount of coverage you need, the company you choose, and most importantly, the value of items you choose to insure. Some contents insurance can cover up to £50,000 worth of your possessions and offer around £10,000 for tenants liability cover.
Tenants liability and contents insurance both help protect tenants.
The main difference between tenant liability insurance covers vs contents insurance is that contents insurance covers personal belongings such as bikes, TVs, beds, and game consoles.
|Renters Contents Insurance Coverage||Renters Liability Insurance Coverage|
Clothing and jewellery
TVs and games consoles
Mobile phones, tablets, and computers
Collectables like antiques, ornaments, and works of art
Some policies may even include:
money and credit card (covered amounts would depend on the policy)
Items away from homelocked garage contentsreplacement locks (key theft)
|Landlord’s items in the property|
Fixtures and fittings
Washing machines, refrigerators
Carpets and soft furnishings
Integrated appliances i.e. oven, fridge, dishwasher, etc.
There are two ways you can get tenant liability cover:
Most content insurance policies will include some form of liability insurance. It is important to check the terms and conditions of your content insurance policy to see exactly what is included and how much it covers.
If you don’t have one yet and you’re looking to take out contents insurance, it’s best to compare each provider’s coverage before purchasing a policy.
Some insurance providers offer tenant liability as separate insurance, but this option is harder to find on the market.
Tenants in the UK are not legally required to take out liability insurance.
However, some landlords require tenants to have one as part of the rental agreement, especially if they’re leasing a furnished home. Although this type of insurance is not mandatory, landlords have the right to ask tenants to buy liability insurance and if you don’t want to get one, you might want to look elsewhere for accommodation.
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Tenants liability insurance in the UK is a type of insurance that serves as accidental damage insurance for tenants. Tenants are not legally required to take out one, but some landlords might require tenants to buy liability insurance, so it’s worth doing some research to find the right policy for your needs.
Tenants who want to protect their valuables and themselves from unexpected expenses, in case they accidentally damage the landlord’s property, might want to consider taking out contents insurance, which often includes tenancy liability. The premiums and amount covered would depend on the type of items you want to insure.
Tenant insurance is not a legal requirement; although, some landlords may ask tenants to take out one.
This type of insurance is a must for tenants who keep valuables at home, want to avoid sudden out-of-the-pocket expenses, and secure their deposits.