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Is Tenant Liability Insurance Worth It?

Written by, Marija Petkova

Updated September, 12, 2022

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.

What is Tenant Liability Insurance?

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. 

Is a Tenant’s Liability Insurance Worth It?

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.

You may be interested in: How Long Does Indemnity Insurance Last?

What Is The Average Cost of Tenant Liability Insurance in the UK?

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.

What Does Tenant Liability Insurance 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 CoverageRenters Liability Insurance Coverage
Kitchen appliances
Clothing and jewellery
TVs and games consoles
Mobile phones, tablets, and computers
Collectables like antiques, ornaments, and works of art
Musical instruments
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.
White goods

What are the different ways to buy cover?

There are two ways you can get tenant liability cover: 

As a part of the contents insurance

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.

As standalone insurance

Some insurance providers offer tenant liability as separate insurance, but this option is harder to find on the market.

Is Tenants Liabilities Insurance Mandatory in the UK?

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.

Bottom Line

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. 

Frequently Asked Questions And Their Answers

What insurance do I need as a tenant?

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.

Is tenant insurance mandatory in the UK?

Tenant insurance is not a legal requirement; although, some landlords may ask tenants to take out one.  

Is tenant liability insurance worth it?

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.

My name is Marija, and I'm a financial writer at DontDisappointMe. Although finance might not be everyone's cup of tea, my 10+ years of working in one of the biggest banks in my country, and my interest in extensive research on everything finance/investment-related, have made me somewhat of an expert in the field (if I do say so myself). No longer having the passion to work in a corporate setting, I decided that I couldn't let all of this knowledge go to waste so I started writing. And, here I am! Today I try to share my knowledge with my audience in the hopes of making this topic as simple and interesting as possible. In my leisure time, I like spending time with my family and travelling to new locations.