Do you need home insurance when renting?

If you’re renting, home insurance may not seem like a priority, especially if you’re already on a stretched budget. There’s a common misconception that insuring the property is the landlord’s responsibility. Whilst it’s true that many landlords will insure the building itself, tenants have their own risks to consider protecting.

In this article, we explain the different types of home insurance for renters and answer the most common insurance questions that tenants have.

What are the different types of home insurance?

Home insurance generally falls under two different types of cover – buildings insurance and contents insurance.

Buildings insurance covers the structure of the property and any fixtures and fittings like a bathroom suite or kitchen. Contents insurance provides protection for items in the home. This includes cover for furniture, electronics, clothing, appliances and artwork. Many home insurance policies combine buildings and contents cover so you pay just one premium each month.

For both buildings and contents insurance, you can choose to pay extra and cover accidental damage claims. This type of add-on could protect you against spilling paint, DIY accidents or breaking an ornament. Insurers set their own conditions so check what the accidental cover includes before buying the policy.

As a tenant, you could buy a type of contents insurance specifically for renters which can include tenant liability as standard or as an optional extra. Tenant liability protects you against accidental damage to your landlord’s property. Without tenant liability cover, you’d have to pay for repairs or replacements yourself.

Do I need home insurance if I rent?

In the UK, tenants aren’t legally required to take out home insurance. Some landlords may specify that you must have contents or tenant liability insurance as a term of the rental agreement. Before signing the tenancy agreement, check to see if this condition is listed.

Even if the landlord hasn’t specified it as a requirement, having insurance provides important protection. Without it, you could face significant out-of-pocket expenses if your landlord’s property or your belongings are damaged, lost or stolen. Our research found that 85% of Gen Z don’t have contents insurance, leaving them at risk of unrecoverable losses.

Do I need buildings insurance as a renter?

Landlords should have a buildings insurance policy in place to protect the structure of the property, which means you won’t need to buy this type of cover. Buildings insurance doesn’t cover your belongings or liability as a tenant which is why it’s important to consider buying cover to protect your personal property.

The types of home insurance for renters

If you’re a renter, these are some different types of home insurance you could consider.

Contents insurance

• Typically covers your personal belongings which can include furniture, electricals, jewellery and art.
• Some policies also offer optional add-ons for items you take outside the home, such as bikes or laptops.
• You can also pay for additional protection for claims resulting from accidental damage.

Tenant liability insurance

•    Protects you if you accidentally damage your landlord’s property.
•   Although it’s not legally required, some landlords may include this as a condition in tenancy agreements.

These two types of insurance can be bundled together in a single policy specifically for renters. This is called tenants’ or renters’ insurance.

Renters’ insurance can provide similar coverage to standard contents policies, although certain scenarios may not be covered as standard. For example, if your bag is stolen when you’re outside of the home. You can usually pay for this type of additional protection though. It’s worth checking how much extra this will cost when you’re looking for quotes. 

Which is the best home insurance policy for renters?

It’s important you choose a policy that suits your needs. So rather than just focusing on price, research every aspect of the insurers you’re considering so you can make an informed decision.

Check what’s included in the policy as standard, what you have to pay extra for and any fees and charges.

Home insurance reviews from other customers are a good way to see how insurers rank against each other when it comes to the products and services they provide. Our community of Smart Money People reviewers have shared who they recommend and who could do better.

Read home insurance reviews to complement your wider research. You can also leave a review of your own if you’d like to share your experience of insurers you’ve bought policies from.