Renters insurance guide: to safeguard personal belongings There are two main types of home insurance: buildings and contents. As a tenant, the only insurance you need is contents insurance – also known as ‘renters’ insurance’. Your landlord is responsible for buildings insurance which covers the structure of a rental property. Renter insurance isn’t compulsory – but it is a good idea. For a relatively small amount of money, you can protect your belongings against a whole list of unfortunate events. According to the Money Advice Service, the average renters home insurance policy costs just £57 a year. ‘The decision about whether or not to insure the contents of your rental property is usually up to you,’ says Greg Wilson, founder of price comparison site Quotezone.co.uk. ‘It is your own stuff, after all. However, some landlords might add a clause to their tenancy agreements requiring the renter to take out tenants’ insurance – so it could be a contractual obligation even though it won’t be a legal one.’ What is renters’ insurance? Image credit: Future plc/David Giles Imagine you’re moving home. Everything that you own and would take with you is considered to be contents – things like your TV, clocks, clothes, gadgets, sports equipment, and so on. Everything which stays in its place is considered to be part of the building (like the bathroom or the kitchen sink). Contents or renters’ insurance protects your belongings against events out of your control such as theft or damage. Tenants need this kind of cover because the insurance your landlord holds doesn’t cover your stuff – meaning you could be out of pocket if something happens to it. A common worry among renters is their possessions being stolen in the event of a break-in. But burglary isn’t the only thing insurance will protect you from. There are plenty of other reasons too such as damage or destruction due to the weather, leaks, flooding, burst pipes, and fires. Hopefully none of these things will ever happen to your home – but you can’t be too careful. Wilson adds: ‘Renters’ insurance is basically another name for tenants’ insurance, and is a type of insurance policy specifically designed to protect the contents of the rental property that belong to you. ‘In practice this means that a good policy should cover your furniture, rugs, books, clothes, gadgets and electrical equipment. Paying out if any of those items are damaged or destroyed by a fire or flood, or stolen during a burglary. Some policies will also cover valuables that you usually carry with you, such as your engagement ring, your watch, and so on.’ Why should I have renters’ insurance? Image credit: Future PLC/ Colin Poole Think about the situation you would be in if all your possessions were destroyed in a fire or flood, or if your most valuable items were stolen. Could you afford to replace all your things? Most people would struggle to buy everything again – so this is where insurance can help. Leanna Donkin, partner at House Partnership, says: ‘Tenants are advised to take out their own contents insurance for the possessions that they bring to the rental house. There is usually a clause (or two) within the tenancy agreement relating to the landlord’s insurance policy. The tenant should ensure that they are familiar with this so that they can adhere as required and not invalidate the landlord’s insurance.’ It would normally take a catastrophic event for you to lose everything you own, but being burgled, having your bag stolen in the pub, being mugged for your phone, or having your bike nicked are a lot more common. However, research from MoneySupermarket.com found that only two in five tenants (40%) have renters’ insurance, despite it being pretty cheap. Many tenants mistakenly think they are covered by their landlord’s insurance. Kate Devine, insurance expert at MoneySupermarket, says: ‘When you consider the overall cost of the possessions we own – from furniture to tech and electronics – assuming you’re covered could be a very costly error. That’s why it’s so important to ensure that you have the right contents insurance in place. ‘ ‘Policies are very affordable, with some of the best on the market cheaper than an annual streaming subscription. On top of this, many policies also include tenants’ liability cover which provide you with protection in case you damage items in the property that you’re responsible for.’ What does renters’ insurance cover? Image credit: Future plc/Simon Whitmore Renters’ insurance policies vary as to what they actually cover. Before you buy a policy, it’s important to check both the risks and events you are protected against, and which of your possessions are covered. A comprehensive renters’ insurance policy will protect your belongings against: • Damage or loss due to fire and smoke • Theft and vandalism if someone breaks into your home • Damage or destruction caused by storms and floods • Household leaks such as water or oil from pipes or appliances in your home • Tenants’ liability if you damage something belonging to your landlord The kinds of possessions that will be covered on a renters’ insurance policy include: • Furniture • Gadgets (such as cameras, smartwatches, and smartphones) • Electrical items (such as computers, tablets and TVs) • Clothes • Cash • Musical instruments • Sports equipment Out of home cover – what you should know The most basic renters’ insurance policies will only cover your possessions while they are in your home. If you want your stuff to be covered while you are out and about, you’ll need to make sure your policy includes ‘personal possessions’, ‘away from home’ or ‘out of home’ cover. This is included as standard on some policies, but you’ll need to pay extra for it on other policies. This type of cover is really important because we often carry around our most expensive possessions such as mobile phones, laptops, and smartwatches. These items are fairly likely to be lost or stolen too – for…

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