Do you have to have home insurance when renting

A survey commissioned by Nationwide in January 2021 found that 22% of renters in the UK don’t have contents insurance, despite half of them worrying they’ll end up causing accidental damage [1].

But although renters don’t legally need to take out contents insurance, protecting your personal possessions is a good idea - especially if you’re living in shared accommodation.

More people coming and going means an increased risk of accidents happening and damage or theft of your possessions.

Contents insurance can help by giving you peace of mind and financial protection if you find yourself needing to replace or repair items.

What type of contents insurance should I get?

Whether you’re renting a room or the whole home, your landlord will be responsible for the building but it'll be up to you to protect your belongings from theft and damage.

The type of cover you’ll need will depend on the type of accommodation you’re renting:

If you’re renting a home with your partner or family, you can simply buy a standard contents-only policy to protect your belongings.

If you’re sharing with other housemates, you can either buy a joint policy together for the property, or you can cover your own possessions by buying a room-only contents policy.

Bear in mind that sharing with others can increase the risk of damage or theft which often makes premiums more expensive. And with a joint policy, if one person makes a claim this is likely to affect everyone’s no-claims bonus.

With a room-only or tenants’ insurance policy, you might need to have a lock on your door and your belongings may not be covered in communal areas.

However, this type of policy will typically include tenants’ liability insurance, which covers you for accidental damage to your landlord’s property.

If you’re renting a room in someone’s home, it’s unlikely that your belongings will be covered by the homeowner’s policy.

Instead, you’ll need to take out your own renters’ contents insurance to cover anything you keep at the property.

Your university may offer you contents insurance when you rent a room in student halls. And even if they don't provide it, several insurers offer specialist cover for students.

Alternatively, parents may be able to extend their home insurance policy to cover their child in halls. But it’s worth comparing what each type of cover includes and costs.

Is my landlord responsible if a leak damages my possessions?

Your landlord’s insurance will usually only cover damage to their property and belongings.

So if there’s a leak in the property and your laptop or other possessions suffer water damage, your landlord’s insurance won’t cover it and it’d be up to you to pay out for replacements.

What’s more, if you accidentally cause water damage in the property - for example by leaving a tap running - your landlord or their insurer could claim compensation from you.

How is renters’ contents insurance different from standard contents insurance?

If you’re renting a room in a house you might not want to pay for covering everyone else’s belongings and may just want to protect your own items.

Whereas standard contents insurance covers the whole property, renters’ or tenants’ insurance is designed to just protect your personal possessions from theft or damage.

Plus tenants’ contents insurance often gives you the added protection of tenants’ liability insurance, in case you cause accidental damage to your landlord’s property.

You buy property insurance to cover damage or loss to property. But what if you don’t own the property or you rent it? Your liability policy might provide some coverage…but probably not enough.

In the world of residential real estate, landlords buy property insurance to cover damage to buildings they own. If you rent a home or apartment, your renter’s policy will cover your contents and other personal belongings. If the loss or damage isn’t your fault, the landlord’s policy will cover it. But let’s say you accidentally cause a fire by leaving a pot unattended on a stove. The liability portion of your renter’s policy would cover your liability for this negligent act.

It works the same way in commercial real estate. If you rent your business premises, you’ll buy property insurance to cover your business personal property and inventory, if applicable. Your policy doesn’t cover your premises, since you don’t own them. But if you accidentally cause fire damage to your landlord’s premises, your liability coverage would apply.

Businesses obtain liability coverage either through a commercial general liability (CGL) policy or through a business owner’s policy, which combines property and liability coverage. The CGL includes coverage for “damage to premises rented to you.” Although this coverage is automatically included in the Coverage A section of your policy, it provides only limited coverage. “Damage to premises rented to you” protects you only from damage due to fire, and a separate, lower limit might apply. If your business premises are damaged by any other cause, the policy would not cover you.

Damage must also be caused by your negligence; otherwise the contractual liability exclusion would apply. For example, let’s say your lease requires you to pay for any fire damage to your leased premises, even if you are not at fault. You have accepted contractual liability for fire damage. The policy’s contractual liability exclusion states it won’t pay for any loss you become obligated to pay by contract. Therefore, the “damage to premises rented to you” coverage would not apply.

Buying tenant coverage will insure your on-premises property, but it won’t cover the building itself. Check your policy to see whether it provides “building occupied by the insured” coverage. This section covers a building you regularly use but do not own— for example, a building you lease, rent or borrow.

You’ll also want to check what “perils,” or causes of loss, your policy covers.

1) Basic form policies cover losses due to common perils, such as fire, lightning, explosion, windstorm or hail, smoke, “physical contact” of an aircraft or vehicle, riot or civil commotion, vandalism, sinkhole collapse or volcanic action.

2) Broad form policies cover the basic perils, plus water damage, structural collapse, sprinkler leakage, and damage caused by ice, sleet or weight of snow.

3) Special form policies, formerly called “all risk” policies, cover all perils except those specifically excluded by the policy. Typical exclusions include damage due to flood, earth movement, war and terrorism, nuclear disaster and wear and tear.

Policies can vary from insurer to insurer. To make sure you have the coverage you need for your rented premises, please either call or email Barker Phillips Jackson at: 417-887-3550 or .

Many people believe home insurance is strictly for homeowners, but that’s simply not true. In fact, most landlords require their tenants to be insured before moving in. Insurance is ideal in either situation, find out the difference between home insurance and tenant insurance to learn more about what each policy covers and does not cover.

If you’re a first-time renter that’s unsure about how insurance for tenants work, and whether it’s really necessary, keep on reading.

What is tenant insurance?

Also known as renters insurance, this important coverage protects those living in a leased house or apartment. Life is full of situations beyond our control. If your residence is affected by a fire or break-in, for example, renters insurance can come in very handy.

Typical coverage includes three basic benefits that will protect you after a covered loss.

Personal property

This will cover the cost of replacing damaged or stolen belongings, up to the limits of your policy. In the event of flood, water leakage, fire, theft or vandalism, renter’s insurance can help protect your belongings while any property damage caused by the incident will be covered by your landlord’s policy. Items can include furniture, clothing, and even jewelry. On the other hand, if you’re covered by homeowner’s home insurance while renting, it may not cover your belongings and if accidents occur, you may have to pay out of pocket for damages.

Liability

If a guest is injured while visiting your home, you could be held responsible. Liability protection will cover your guest’s medical expenses, property damage, and even legal fees if applicable.

Living expenses

Your home may become temporarily uninhabitable after a covered loss. Renters insurance can take care of additional expenses, such as hotel and food bills until you’re able to move back in.

Tenant insurance generally protects what’s inside the home, and don’t typically address what happens outside the home. External areas are often the responsibility of the landlord – as are damages to ventilation units, electrical wiring and heating systems. If you’re unsure, ask your insurance advisor what’s covered under your policy.

What happens if I don’t have tenant insurance?

You won’t be breaking any laws by not having renters insurance, but that doesn’t mean it’s a smart idea to ditch it altogether. Tenant insurance is completely optional but without this important coverage, you could be risking everything you own – plus your overall quality of life.

From family heirlooms to expensive electronics, think of all the valuables in your home. If there was ever a fire or burglary, these things would be destroyed or stolen. Without tenant insurance, you’d receive no financial reimbursement for your loss.