Contents insurance for landlords in the UK pays for items damaged or destroyed inside the property. It only covers the landlord’s items and does not protect against the tenant’s personal possessions.
Contents insurance does not come as standard for most landlord policies. But it can be advised if a property is heavily furnished or includes high-value items.
According to NimbleFins, even if a property is let unfurnished, there may be a few expensive items owned by the landlord that they wish to protect in the property, such as an oven, its hood, dishwasher, washing machine, and fridge. Appliances that are free-standing or easily removable (even if screwed to a wall) would generally be considered contents.
If the appliances are built into the kitchen, they will fall under building insurance. Likewise, all other fitted items, such as a bath or shower, are also considered ‘buildings’ rather than contents. For an item to be considered under building insurance, it cannot be reasonably removed and taken to another property without causing damage, the Financial Ombudsman says.
It is up to the landlord to weigh up the risks and whether they can afford to replace the items at a moment’s notice.
It is the tenant’s responsibility to find insurance for their own contents. A landlord cannot demand a tenant has contents insurance, but the landlord is also not liable for damage or disappearance of their possessions unless it can be traced back to a fault with the property. At this point, the landlord’s liability insurance could cover claims. Find out more about public liability insurance for landlords here.
What does landlord contents insurance cover?
Landlord contents insurance covers any items in a rented property owned by the homeowner. It does not cover a tenant’s goods.
The landlord’s landlord contents insurance would cover any of the landlord’s goods that are moveable within the property. This would include items such as a free-standing oven, fridge, washing machine, sofa, bed, bedside tables, wardrobes, tables, and desks.
It would not include attached items such as a shower, fireplace, light fittings, curtain rails, or bannister. These, because they are fitted, would fall under building insurance.
There are some grey areas which the Financial Ombudsman has endeavoured to clear up, such as if a kitchen cabinet was removed to fix dampness behind it. Because it is no longer fixed, would it be covered under contents or building insurance? The Financial Ombudsman says this is still classed as a ‘buildings’ claim as the item was only removed temporarily. However, the same cannot be said for a new flatpack cabinet still in its packaging. At this point in its construction, this is considered a moveable item and so would fall under contents insurance if it were to be destroyed or damaged.
It is a tenant’s responsibility to secure their own contents insurance. A landlord cannot be held liable for damage, disappearance, or destruction of their goods unless this took place due to an incident to the home. One example would be if a water pipe burst and flooded the home and the tenant’s artwork was destroyed. A tenant could claim on the landlord’s insurance as part of their public liability clause.
Do I need contents insurance as a tenant?
A tenant may want to consider contents insurance, although it is not a legal requirement to rent a home, nor can it be demanded of them as terms of a rental agreement.
According to one study by the Financial Inclusion Commission, 81% of renters do not have contents insurance. That’s 10.5 million people at the time of the report.
But two-thirds of renters are vulnerable to hardship due to their financial capabilities or health, analysis by the Financial Conduct Authority (FCA) says.
If these people lost their belongings, it might be difficult for them to replace them all. Contents insurance would be a much-needed buffer if anything bad were to happen.
While a tenant can be extremely careful, some things are out of their control. A fire or a burglary could occur, or property could become flooded through no fault of their own.
When weighing up whether to buy contents insurance, which can cost about £140 a year, give or take, a tenant should consider the value of their items and the risk of an incident.
If a tenant owns an expensive bike, jewellery, or electrical items they couldn’t afford to replace, contents insurance could be a useful safety net.
Equally, if the area a tenant lives in has a high burglary rate, a history of flooding, or another high-risk factor, it may also be prudent to take out tenants content insurance.
As well as tenants’ contents insurance, there is also tenants liability insurance, which protects a renter if there is damage to a landlord’s belongings in the home.
Some providers offer a joint package as a standard that simplifies the process.
Contents insurance may already be included in a landlord’s policy. Still, tenants must remember this will only cover the property owner’s items, such as an oven, white goods, sofa or bed, and not the tenant’s.
