What is tenants’ liability insurance?

Key takeaways

• Tenants’ liability insurance can cover accidental damage to your landlord’s property, fixtures and fittings

• It isn’t a legal requirement, but it could help you avoid paying large repair costs yourself

• It usually excludes intentional damage, pet damage, normal wear and tear, and damage caused by housemates or guests

What is tenants’ liability insurance?

Tenants’ liability insurance covers the cost of accidental damage you cause to your landlord’s property, fixtures or fittings while renting. For example, if you were to spill wine on a carpet or if a child scribbled on a wall and it needed repainting.

Cover for tenants' liability, which is sometimes called renters’ liability insurance, is generally considered worth getting because it covers costs that might otherwise come out of your security deposit. In more extreme cases, it could even prevent legal action from the landlord.

Many renters wrongly assume their landlord's insurance covers all damages, but landlord policies usually only cover the building itself, not tenant-caused damages or possessions. Having your own tenants’ liability insurance should ensure you're not unduly financially burdened by accidents and can give you peace of mind throughout your tenancy.

What does tenants’ liability insurance cover?

Tenants’ liability insurance protects you from costs arising from accidental damage to your landlord's property, including fixtures and fittings, so it could cover accidental damage to your landlord’s:

• Furniture (such as built-in wardrobes)

• White goods (such as fridges and washing machines) and appliances

• Bathroom suite

• Carpets and soft furnishings

• Windows, glass doors or mirrors

• Interior decor

So, if you inadvertently put a hole in the wall, leave the bath on and cause water damage, or break a window, tenants' liability insurance can help with the cost of repairs or replacements. You should check your policy documents for a full list of what is included.

What doesn’t tenants’ liability insurance cover?

Tenants’ liability insurance does not usually cover:

• Vandalism

• Intentional damage which you cause

• Damage from pets

• Normal wear and tear

• Accidental damage caused by your housemates or houseguests

• Damage if you leave the property unoccupied for a certain period of time

What's more, there is often a cap on the payout amount for accidental damage, so it's important to verify your policy's limit to ensure it meets your requirements.

When do I need tenants’ liability insurance?

You don’t legally need tenants’ liability insurance in the UK, but it can be useful if you’d struggle to pay for accidental damage to your landlord’s fixtures, fittings or furniture.

Some landlords or letting agents may recommend tenants’ liability insurance before you move in. However, you should usually be free to choose your own provider, and tenants’ liability cover should not be treated as a compulsory extra fee.

Check your tenancy agreement carefully and ask the landlord or letting agent to explain anything you’re unsure about. Ideally, you should consider taking out tenants’ liability insurance at the start of your tenancy agreement, but you can take it out at any point during your tenancy.

Do I already have tenants' liability insurance?

You might already have tenants’ liability insurance if it’s included in your tenants’ contents insurance policy. Check your policy documents for phrases such as “tenants’ liability”, “tenant’s liability” or “liability to landlord”.

How much does tenants' liability insurance cost?

Tenants’ liability insurance is often included as part of a tenants’ contents insurance policy or offered as an optional extra. The price you pay can depend on the insurer, the level of cover you choose and whether you buy it alongside contents insurance.

While this does not show the standalone cost of tenants’ liability insurance, MoneySuperMarket data shows the median annual premium for tenants’ contents insurance was:

• Furnished council homes: £74^{^}

• Unfurnished council homes: £66^{^}

• Housing association homes: £67^{^}

• Furnished private rental: £62^{^}

• Unfurnished private rental: £71^{^}

What’s the difference between tenants’ liability insurance and contents insurance?

Tenants’ liability insurance primarily protects against damage to the rental property itself, such as fixtures and fittings owned by the landlord, while tenants' contents insurance covers loss or damage of the tenants' personal belongings due to events like theft, fire, or flooding. To help you work out what you need, consider:

• The value of your personal belongings

• The terms of your lease

• Your financial ability to replace damaged items or cover potential liabilities

It’s also worth noting that some tenants' contents insurance includes tenants’ liability insurance as standard. If not, it should be an optional extra.

How much tenants’ liability insurance do I need?

The amount of tenants’ liability insurance you need depends on your tenancy agreement, your landlord’s requirements and the level of cover offered by your policy. Before buying cover, check your tenancy agreement to see if your landlord or letting agent asks for a minimum level of tenants’ liability insurance.

Some agreements may ask you to have cover in place for accidental damage to the landlord’s fixtures, fittings or furniture. You should also check:

• The policy limit: This is the maximum amount your insurer will pay for a claim

• The excess: This is the amount you’ll need to pay towards a claim

• What’s included: Some policies only cover fixtures and fittings, while others may include furniture provided by your landlord

• What’s excluded: Damage caused deliberately, by pets, or through general wear and tear usually won’t be covered

• Whether you rent furnished or unfurnished: You may want more cover if your landlord has provided furniture, white goods or other items

Does tenants’ liability insurance protect my security deposit?

Tenants’ liability insurance can help protect your security deposit if it pays for accidental damage your landlord would otherwise deduct from your deposit. For example, if you accidentally damage your landlord’s carpet, furniture or fixtures, your insurer may cover the cost of repairs or replacement, depending on your policy.

This could reduce the chance of your landlord taking the cost from your deposit at the end of your tenancy. However, tenants’ liability insurance does not guarantee that you’ll get your full deposit back - your landlord may still make deductions for things your policy doesn’t cover, such as unpaid rent, cleaning costs, general wear and tear, or damage caused deliberately.

According to Shelter, landlords can make deposit deductions for accidental damage, but not for fair wear and tear or issues that are the landlord’s responsibility. Before making a claim, check your policy documents so you know what’s covered, what’s excluded and how much excess you’ll need to pay.

Which other insurance products should I get as a renter?

If you’re renting a property, as well as tenants' contents insurance and tenants' liability insurance you might want to consider these add-ons:

• Accidental damage cover - in case you damage your own possessions

• Personal possessions cover - for items you take out of the home such as your laptop

• Legal expenses cover - to protect you against the costs of being sued, or of making a claim against someone

How do I get a great deal on tenants’ liability insurance?

Shopping around is usually the best way to find a tenants’ liability insurance policy that suits your needs and budget.

MoneySuperMarket can do the hard work for you. With us you can compare lots of different renters’ insurance quotes in minutes to help you find the best cover for your circumstances.

You can also compare home insurance options with MoneySuperMarket, including contents cover for renters.