Do you need home insurance when renting in the UK?

The number of older people renting in the UK is rising. In fact, according to the National Housing Federation, the number of 55-year-old and above households in the private rented sector has grown by 70% since 2010/11 [1].

Whether you rent or own your home, finding the right home insurance can help protect the things you care about.  However, not all home insurance products are relevant to tenants.

In this article, we’re putting home insurance under the spotlight. We’ll explore the types of cover available, which insurance products are relevant to renters and where your landlord’s responsibilities lie.

What is home insurance?

Home insurance is designed to provide financial protection should an event such as a fire, flood or burglary occur in your home. It is often used as a collective term that combines two types of cover - buildings insurance and contents insurance.

What is the difference between buildings and contents insurance?

• Buildings insurance covers the structure of your home (walls, roof, floors) and permanent fixtures (kitchens, bathrooms).
• Contents insurance protects personal belongings within the home (furniture, electronics, decorative items).

For example, if a tree fell through your window during a storm, the repair of the window may be covered by your building insurance. However, if the dressing table in front of the window is damaged, the repairs or replacement would be covered by contents insurance.  

Do I need home insurance if I rent?

There is no legal requirement for tenants to take out home insurance for a rental property. Buildings insurance is only required if you have a financial interest in the property, such as being the mortgage holder. Therefore, this cover will fall to your landlord to manage or (if you’re in a flat) the building’s freeholder.

Whether you take out content’s insurance is up to you. While it may not be a requirement, there are benefits to this cover you should consider. Keep reading to learn more.

Do I need buildings insurance as a tenant?

No. Building insurance falls to whomever has a financial interest in the property, typically the landlord or freeholder.  

If you’re worried about what repairs are covered, you can ask your landlord to confirm what insurance is in place.

It is worth noting that private landlords, housing associations, and councils are always responsible for repairs concerning:

• Gas pipes and boilers (including heating and hot water)
• Electrical wiring
• Ventilation and chimneys
• Sinks, baths, and toilets
• Plumbing and drains
• Internal and external walls
• Stairs and bannisters
• Doors and windows
• The roof

Do I need contents insurance as a tenant?

Having contents insurance can be beneficial as a tenant, even though it’s not a legal requirement. This is because, whilst you’re not responsible for the building itself, you are responsible for any personal belongings kept inside.

Here, we explore some of the reasons you may wish to have contents insurance for your home.

To protect your personal property

Having contents insurance will provide you with financial protection if your belongings are ever lost or damaged in an event such as a fire, flood or burglary. This may be particularly important if you live in an area with risks such as higher crime or flood rates.

To gain liability coverage

Liability insurance provides protection against claims which result from injuries and damage you may accidentally cause to other people or their property. For instance, if a chair in your home collapsed when a visitor sat on it and this caused them harm. Or, if your dishwasher leaked and caused water damage in the flat below.

To meet a lease requirement

Some landlords may require tenants to have contents insurance as part of their lease or rental agreement.

As a tenant, what benefits or features should I look for in home insurance?

If you’re renting a property, there are certain home insurance features or benefits that will be more or less relevant to you. Delving into the details of cover will help you avoid overpaying for your insurance, underinsuring yourself or picking an inappropriate product.

Here we list some features to look out for.

Flexibility

As a tenant, insurance products that allow you to cancel or amend your cover without any admin fees can give you more flexibility.

Home emergency cover

When renting, you should not need to invest in insurance cover like home emergency as the landlord is responsible for ensuring you have heating and hot water. However, you may want to ask your landlord in advance how you can access the support you need, if an issue at the property arises.

Accidental damage

Whilst your landlord is responsible for the structure and exterior of your rented property, if you cause any damage to the property, it may be down to you to fix the issue. In this case, having accidental damage cover is very helpful. You can read more about accidental damage when renting in our article here.

Do I need contents insurance in a care home?

While contents insurance is not mandatory for care home residents, you may wish to protect personal belongings and provide financial security against potential losses. Before you do so, it’s worth asking the care home if insurance is provided by the facility and checking whether this amount would cover the value of your possessions.

Do you need home insurance if you rent out your home?

If you rent a property out to tenants, it’s your responsibility as the landlord to insure the building, fixtures and fittings. This can be done through home insurance, buildings insurance or a more specific landlord's insurance. Although this is not a legal requirement, it is likely a requirement if you have a buy-to-let mortgage. It will ensure you protect your property against the loss and damage that can occur through unforeseen incidents. It can also help minimise any disruption for your tenants.

It is your tenant’s responsibility to seek contents insurance for their own belongings.

Summary

Ultimately, when it comes to home insurance and the rental market there are a few key points to keep in mind:

• Typically, contents insurance is the responsibility of the renter.
• Buildings insurance is usually the responsibility of the landlord/property owner.
• Insurance products can differ from one provider to the next, checking your paperwork is the best way to ensure your cover suits your living situation.

[1] The National Housing Federation.