Renters' insurance: what your landlord's policy won't cover — and what you need
A landlord's buildings policy covers the structure of the property. It does not cover your possessions, your liability, or your temporary accommodation costs if the property becomes uninhabitable. This guide explains the gap and what renters' insurance fills.
The gap most renters don't know exists
When a fire damages a rented property, the landlord's buildings insurance pays for the structural repairs. But the tenant's possessions — furniture, electronics, clothing, bicycles, jewellery — are not covered by that policy at all. They are the tenant's sole financial responsibility.
The same applies to theft, escape of water, and accidental damage to your own belongings. A landlord's policy is designed to protect the landlord's financial interest in the property. It has no obligation to protect yours.
This distinction — between what is covered by a buildings policy and what requires a separate contents policy — is fundamental to understanding home insurance. See our guide to renters' insurance explained for a full breakdown of the cover structure.
What a renters' policy typically covers
Your possessions
Contents insurance replaces or repairs your belongings if they are stolen, damaged by fire or flood, or destroyed. Most policies cover items both at home and away — check whether portable electronics are included.
Tenant's liability
Covers accidental damage you cause to the landlord's fixtures and fittings — carpets, walls, built-in appliances. Limits typically start at £5,000; higher-end rentals may need more.
Personal liability
If a visitor is injured in your home and holds you responsible, personal liability cover pays your legal costs and any compensation awarded. Limits of £1–2 million are standard.
Alternative accommodation
If your rented property becomes uninhabitable after a covered event, some policies pay for temporary hotel or rental costs while repairs are carried out. Check whether this is included and at what limit.
Key things to check in any renters' policy
- Sum insured: Is it enough to replace everything you own at today's prices? Most people underestimate — use a room-by-room valuation. See the contents valuation guide.
- Sub-limits: Many policies cap jewellery, bicycles, and portable electronics separately. If a single item exceeds the sub-limit, it needs to be listed as a specified item.
- New-for-old vs indemnity: A replacement cost (new-for-old) policy replaces items with new equivalents. An indemnity (ACV) policy deducts depreciation — much less favourable for older electronics and appliances.
- Excess: The amount you pay towards each claim. A higher excess reduces your premium but means smaller claims may not be worth making.
- Away from home cover: Check whether portable items (laptops, phones, cameras) are covered outside the property, and whether there is a separate limit for items away from home.
How much does renters' insurance cost?
Renters' insurance is typically cheaper than homeowners' cover because it does not include buildings insurance. For a one-bedroom flat in the UK, contents-only cover with tenant's liability starts at around £5–£15 per month depending on the sum insured, location, security measures, and whether you opt for accidental damage cover.
The excess you choose has a significant effect on price — raising the voluntary excess from £50 to £250 can reduce the premium by 20–30%. For guidance on comparing quotes, see our guide to comparing insurance quotes.
Renters' insurance FAQ
Frequently asked questions
- No. A standard landlord's buildings policy covers the structure of the property — walls, roof, fixtures, and fittings — against events like fire, flood, and subsidence. It does not cover your furniture, clothing, electronics, or any other personal possessions. If a burst pipe ruins your sofa and laptop, you are responsible for the full replacement cost unless you have your own contents insurance. The Association of British Insurers (ABI) estimates the average UK household owns contents worth over £35,000.
- Tenant liability (also called tenant's liability) covers accidental damage you cause to your landlord's fixtures, fittings, or decorations — for example, a wine stain on the carpet or a cracked bathroom tile. It is separate from personal liability cover, which protects you if a visitor is injured in the property and sues you. Many renters' policies include both. Check the limit: £5,000 for tenant's liability and £1–2 million for personal liability are common starting points, but limits vary widely.
- In the UK, renters' insurance is not a legal requirement. However, some landlords include a clause in the tenancy agreement requiring tenants to hold contents insurance. Even without such a requirement, the financial risk of going without it — losing all your possessions and facing a large liability claim simultaneously — is significant. The MoneyHelper guidance on home insurance recommends all tenants consider contents cover.
- Start with a room-by-room inventory. Add up the replacement cost (not the second-hand value) of everything you own — clothing, electronics, furniture, kitchen equipment, books, sports gear. Most people significantly underestimate this figure. A one-bedroom flat with modest possessions typically reaches £15,000–£25,000; a family household is often £40,000–£60,000 or more. See our contents valuation guide for a step-by-step method.