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What Is Tenant Insurance?
Tenant insurance also known as renter’s insurance is designed for tenants who are renting a home. Since unexpected things can happen anytime, your belongings must be protected adequately. It helps you to protect your belongings as well as cover the cost if you damage your landlord’s property unintentionally.
Whether you rent privately from a landlord or you are a local authority tenant, Deppy can give you a cover that you need for your possessions.
This insurance can be of two types including tenant content insurance and tenant liability insurance.
This would cover your personal possessions that you bring with you to the property; everything from your phone, to your tv – expensive jewellery and bikes, would all be covered under a tenant’s contents insurance. You don’t have to buy contents insurance (it’s not a legal requirement in the same way car insurance is),
However your belongings would not be covered under any insurance policies that your landlord may take out; so if you’d like protection, particularly for your expensive items, then contents insurance is certainly worth looking at.
Such a policy could protect you for accidental damage – for example, you drop an expensive item and break it. For theft or loss – for example, in the case of burglary, or if you lose an item when outside your home.
Or in the case of fire or flood at the property; your landlord will be insuring the building itself, but your personal possessions would not fall under their policy in those cases.
Because contents insurance is not mandatory, you do not have to take it out before beginning your tenancy; you can purchase a contents insurance package at any point during your tenancy. Of course, you cannot purchase the insurance after an event such as a fire or burglary, and claim the loss of that item.
Under the terms of a tenancy agreement, you must lodge a security deposit with your landlord – typically in the form of cash. This will cover any damage that you make to the landlord’s possessions (either the building itself, or the contents listed on the inventory that you signed when you started the tenancy).
If you damage any of those items, you must pay directly for them at the end of the tenancy from your security deposit. However, you can insure that risk with liability insurance.
Should you damage the landlord’s property, you can claim on the insurance rather than pay directly for the damage. Take note of the specific terms of liability insurance and exactly what it covers; typically, it’s damage to listed items and property from which your security deposit is liable.
It will not include any cleaning costs associated with the end of tenancy, or any rent arrears – both of which would still come out of your security deposit.
What Does Tenant Insurance Cover?
If there is a fire at your home that damages your belongings, you can make a claim to cover the cost of repair or replacement.
If your home is broken into and your belongings are stolen, do not worry tenants insurance will cover the cost.
If your possessions are damaged due to flood, the cost of repair is covered by tenant insurance.
Storms in recent years have caused significant damage to homes. With storm cover, you can recover the cost of contents damaged by the storm.
You can also get a cover in case the floor of your home sinks or shifts causing damage to the foundation of the building.
If there is a problem of burst water pipe or water leakage in your home that causes damage to your possessions, you can claim for the cost of repair.
What Is Not Covered In Tenant Insurance?
Wear and Tear
Unforced Entry and Theft
Contents Outside the Home
Do I Need Home Insurance as a Tenant?
If you are thinking of renting a property, it is good to consider taking out tenant insurance. Because the worst could happen any time, suppose you come home and find you have been burgled, tenant insurance can cover the cost of all your possessions if they are damaged or stolen. Although it is not a legal requirement, if you want to protect your belongings it is better to have insurance as a tenant.
Although you can purchase an insurance policy as a tenant at any time when taking out a property on rent. Having a cover in place before moving-in can give you peace of mind in terms of safety when something goes wrong.
How Much Does Tenant Insurance Cost?
According to the Association of British Insurer (ABI) UK insurance providers charge £135 on average. However, the price can vary depending on following things:
- The type of cover you need because some accidental damages can cost more.
- The cost of your possessions that you want to insure from clothes to the expensive items.
- Location of your rental property because the properties in high crime rates have a high insurance premium.
- You can get a discount if you have no claim bonus.
- The more your rented home has security the less will be the insurance cost.
If you pay annually you can save money on tenant insurance because insurers charge higher interest rates on monthly payments. You can also save money when you buy insurance online. We provide you instant tenant insurance quotes online to save your time and energy.
Who Pays Building Insurance Landlord or Tenant?
When you are taking a property on rent it is not your responsibility to have building insurance because the building does not belong to you. If something wrong happens such as a wall fell down your landlord is responsible for putting it back up again. As a tenant you just need to worry about your belongings, thus you need only content insurance as a tenant.
If you are looking for the best tenant insurance, you do not need to go anywhere else we will provide you a cover that can meet all your requirements.
How To Get Cheap Tenant Insurance?
There are several factors that affect the cost of insurance. Not all the factors are in your control such as the location of your home. However, you can use following steps to get a cheap tenant insurance:
- You may find it more manageable to pay monthly but insurers charge you more in return of spreading payment monthly. Thus, pay annually to reduce the cost.
- Whenever it is time to renew your policy do not auto-renew instead shop around and find the best tenant insurance UK.
- Take time to find out which type of cover you need so that you do not have to pay for a cover that is not needed.
- You can ask your landlord to increase building security e.g by using burglar alarms. It can help you to get insurance at a cheap rate.
- Pay more excess toward a claim. When you pay a high excess it tells your insurer that you will only make a claim when it is really worth it. As a result, insurers reduce the insurance premium.
Before purchasing any insurance policy read all the details carefully to make sure it meets all your requirements.