Published: 19/09/2023Accidents can strike at any time when you're renting your home and they're often beyond your control. However, the financial aftermath of such accidents can be a manageable burden if adequately prepared. Having the right insurance for you and your rental property is crucial to renting.
With years of experience in the rental market, Circa London understands that Tenant insurance is needed as it isn't just about protecting your personal belongings; it also safeguards your interests with standard tenant liability coverage. So, let's dive into the essentials of tenant insurance and why it's essential for renters.
Do I Need Tenant Insurance?
While there's no legal requirement to have tenant insurance, it's a wise choice if you own valuable items like mobile phones, computers, bicycles, or jewellery. Tenant insurance can shield your possessions from theft and unexpected events like fires, floods, or burst pipes. Additionally, during your tenancy, you're responsible for your landlord's contents, including furniture and fixtures. Ensuring these items are insured is a smart move to avoid unnecessary risks, especially when accidents can happen.
Is Tenant Insurance necessary if I Share a property?
If you share with others, you have two options for insurance. You can opt for a common policy that covers everyone in the property, or you can choose individual coverage for the contents in your own room. If you go the common policy route, be aware of the concept of "association." If one of your flatmates makes a claim, it can affect your insurance premiums for years, even if you no longer live with that person.
Students should consider policies designed specifically for them rather than general tenant insurance.
What's Included in Tenant Insurance?
Tenant insurance typically includes two main components: Contents Cover and Tenant Liability Cover. Contents Cover ensures that if your personal possessions are lost, stolen, or damaged, you can cover the cost of repairing or replacing them. On the other hand, Tenant Liability Cover ensures repairs to contents owned by the landlord, such as furniture and fixtures, in case of accidents.
Your tenant insurance policy may also provide immediate coverage against various perils such as fire, explosion, lightning, earthquake, flood, theft, malicious acts, or riots. You can even add extra coverage for specific possessions, whether at home or travelling, giving you peace of mind wherever you go.
Does a Rental Property Need to Be Covered by Tenant Insurance?
No, you don't need to insure the property itself. Building insurance is the responsibility of the landlord.
What Isn't Covered by Tenant Insurance?
It's important to note that tenant insurance won't cover wear and tear. For instance, you won't receive a payout if your old laptop stops working due to age. However, you'll be covered if a pipe bursts and damages your computer.
Tenant insurance also doesn't cover unforced entry. If a burglar enters your home through an open door or window or if someone gains access through deceptive means, your policy won't apply.
Remember that coverage may lapse if the property remains unoccupied for an extended period, typically around 30 days. If you plan to be away longer, check with your insurer.
Additionally, when making a claim, you may need to contribute a certain amount known as the "excess," which varies by policy.
While tenant insurance isn't a legal requirement, it's a highly recommended investment. Simple accidents like spilling a drink on the carpet can lead to unexpected expenses, but with tenant insurance, you can rest easy knowing you won't risk losing your initial rental deposit. So, protect your belongings and peace of mind by considering tenant insurance for your next rental adventure.
If you're a tenant looking to rent a flat in London, the team at Circa London is on hand and ready to help.
Disclaimer: The information provided in this blog is for general informational purposes only.