What is tenants’ liability insurance?
Key takeaways
Tenants' liability insurance gives cover for accidental damage to the landlord’s property
While not legally required, tenants' liability insurance safeguards against costly repairs
It excludes intentional damage, damage caused by pets, and normal wear and tear
What is tenants’ liability insurance?
Tenants’ liability insurance is specifically designed for renters and protects against financial losses if you accidentally damage your rented property. 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. However, 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.
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 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?
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?
It's not a legal requirement to have tenants' liability cover. But for peace of mind or if you feel you'd struggle to find a big lump sum to pay for any damage you cause, it can be good idea to take it out.
Some landlords or letting agents may make this insurance a condition of the tenancy agreement to protect their property, which can limit your rental options if you don't have cover.
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.
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
Tenants contents insurance: covers loss or damage of the tenants' personal belongings due to events like theft, fire, or flooding
Selecting the appropriate insurance depends on your specific needs. 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?
Firstly, assess the value of the landlord's property. Consider the potential costs of any accidental damage. This includes not only the physical structure but also fixtures and fittings
Next, consider your personal circumstances. If you often host guests or have pets, the risk of accidental damage increases. This might suggest a need for more comprehensive cover.
Consulting with insurance experts is also advisable. They can provide tailored advice based on your specific needs and help you evaluate your situation and suggest an appropriate level of cover. This ensures you are neither underinsured nor overinsured.
Being underinsured could leave you financially vulnerable. Conversely, being overinsured means paying for cover you might not need.
Does tenants’ liability insurance protect my security deposit?
It's not guaranteed to, but it certainly can help protect your deposit. If you cause accidental damage to your landlord's fixtures and fittings and your insurance covers the cost, your landlord won't be able to deduct the cost of repairs or a replacement from your deposit.
You need to make a claim on your insurance as soon as possible - often within 30 days of the accidental damage - so don’t wait until the end of your tenancy to claim.
However, it's important to note that tenants' liability insurance does not cover all aspects related to your security deposit.
For instance, it does not protect against claims for unpaid rent or general cleaning costs if you leave the property dirty when you move out.
To protect your deposit, document the property's condition at move-in and move-out. Taking photos and maintaining a detailed inventory can provide evidence in disputes.
It's also important to stick to your lease terms and look after the property carefully to avoid potential deductions.
Which other insurance products should I get as a renter?
If you’re renting a property, as well as tenants contents insurance and tenant’s 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 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 life renters’ insurance quotes in minutes to help you find the best cover for your circumstances.
