Navigating contents insurance: Confused.com expert sheds light

Matthew Harwood, home and lifestyle expert at Confused.com home insurance.

Renting a property brings with it many questions, and one commonly pondered is the necessity of home insurance. Recent research by Confused.com’s home insurance experts reveals that the question “Do I need home insurance if I rent?” has been a concern for over 3,000 individuals in the UK over the last year.

For renters in the UK, the key insurance to consider is ‘contents insurance.’ This coverage safeguards personal possessions such as furniture, electronics, and clothing against theft, loss, or damage. While landlords typically secure ‘buildings insurance’ for the structure itself, tenants should check their landlord’s coverage.

Navigating contents insurance can be confusing, as evidenced by the number of searches about its inclusions and costs. Questions like “What is contents insurance?” (7,380 searches) and “How much does contents insurance cost?” (5,490 searches) underscore the importance of understanding the financial aspect of home insurance for policyholders.

Confused.com’s home and lifestyle expert, Matthew Harwood, addresses common inquiries.

How much is landlord insurance?

“The price of landlord insurance in the UK varies. It can depend on your property’s value and how much protection you want. It can also depend on where your property is, the kind of tenants you have, and if you choose extra cover. Costs can range from a few hundred to several thousand pounds a year. It’s worth comparing a few quotes to find the best price for your needs.”

What does landlord insurance cover?

“Landlord insurance usually covers the cost of repair to your building if it’s damaged by fire, flood, or other serious risks. It can also cover you if someone gets hurt on your property and sues you. Plus, it might cover lost rent if something happens to the insured property.”

What is contents insurance?

“Contents insurance is for the things you own in your home. It can pay to replace items like furniture, appliances, clothes, and sometimes money or jewellery if stolen, lost, or damaged.”

What does contents insurance cover?

“Contents insurance can replace your belongings if they’re stolen or ruined by fire, theft, and floods. Most policies cover furniture, electronics, appliances, and clothes. Some contents insurance policies cover personal items away from home, such as your phone or laptop. There’s usually a limit on how much you can claim for 1 item, so you might need to buy more cover for valuable items.

“Wear and tear from everyday use isn’t covered by a contents insurance policy. This means you can’t claim for belongings that have deteriorated over time due to regular usage​.

“You can add extras to your policy that cover other risks, for example, accidental damage. This extra usually covers the cost of fixing accidental damage, such as a wine spillage on a sofa.

“Unoccupied property cover is another example of this. This policy extra covers the cost of ​damage that might have occurred while your home was left unoccupied for a long period, often 30 days or more.”

What is landlord insurance?

“Landlord insurance is for people who rent out their properties. It protects you from the extra risks you face when you’re a landlord, like damage to your property and lost rent. It’s more extensive than normal home insurance because renting can bring more risks.”

How much does contents insurance cost?

“Average contents insurance costs £48.36, according to Confused.com’s home insurance statistics. But contents insurance prices in the UK vary. Factors like the value of your possessions, your home type, security features, and location can affect the cost. It’s important to shop around and choose a policy that fits your needs, so you don’t have too little or too much insurance.”

How much contents insurance do I need?

“To work out how much contents insurance you need, add up the value of the things you’d want to replace if they were damaged or stolen. Make a detailed list of everything, including how much it would cost to buy new. Going room by room to list your belongings can help ensure you don’t miss anything.

“The cost of contents insurance varies. Prices are based on several factors, including the amount of cover you need, where you live, and any security devices in your home. As a rough idea, Confused.com data shows that the average house has £52,000 worth of contents. But the most accurate approach is to inventory your possessions.​

“It’s also worth noting that most policies offer ‘new for old’ cover. This means you would be compensated with the full replacement cost for lost, stolen, or damaged items. But, some policies might only offer the amount your items are worth.”

What insurance do landlords need?

“Landlords need landlord insurance. This insurance protects the building, covers them if someone is injured and helps with lost rent. You might also need contents insurance for furnished properties, legal expenses insurance, and rent guarantee insurance.”

What is tenant’s insurance?

“Tenant’s insurance, or renter’s insurance, is a policy for tenants living in a rented property. Contents insurance for tenants mainly protects your belongings in the property. It can also provide coverage if someone gets hurt in the rental space and holds you responsible.”

Do I need home insurance if I rent?

“If you’re renting, you don’t need building insurance – that’s your landlord’s responsibility. But it’s wise to have contents insurance to protect your personal belongings. Buildings insurance is for the actual structure of the building. Contents insurance is for your items inside the property.”

In conclusion, while building insurance remains the landlord’s responsibility, tenants benefit from securing contents insurance to protect their personal items. The intricacies of home insurance underscore the importance of tailored advice from licensed providers or brokers, ensuring individuals make informed decisions to safeguard their homes and possessions.

Image: © RDNE Stock project via Canva

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