23 December 2024
Do I need contents insurance as a landlord?
4 minutes
Whether you’re a first-time landlord or an experienced buy-to-let investor, having the right insurance policy in place is essential. Before you start renting to tenants, you must ensure you’re covered should the unexpected happen to your property or its occupants.
But what about the contents of your rental property? Do you need contents insurance as a landlord?
If you’re renting out an unfurnished property, you probably won’t require contents insurance. However, if your property is part or fully furnished, you might benefit from the extra protection and peace of mind that contents insurance brings.
Here, we explain what contents insurance for landlords is, what it covers, and how to get it.
Do landlords need contents insurance?
Does a landlord have to insure contents? Is contents insurance mandatory?
These are common questions for first-time landlords. The short answer is that contents insurance is not mandatory. However, it can be a good idea if your property comes furnished or part-furnished (or if it’s unfurnished but partly or fully carpeted).
What is contents insurance for landlords?
If you provide furnishings and appliances to your tenants as part of your rental agreement, an unexpected incident could leave you significantly out of pocket if you’re not adequately insured.
Like standard home contents insurance, landlord contents insurance can cover the cost to repair or replace certain items in the event of a fire, flood, theft, or malicious or accidental damage.
What does landlord contents insurance typically cover?
Landlord contents insurance policies vary from one provider to the next, but they will typically include cover for damage to the following:
- Furniture, such as sofas, chairs, dining tables, wardrobes, chest of drawers, and beds
- Fixtures and fittings, such as curtains or carpets
- Appliances, such as ovens, microwaves, and freestanding white goods like fridges, freezers, or washing machines
- Landlord-owned personal items, such as pictures, decor, cutlery, utensils, etc.
What’s usually not included in landlord contents insurance?
Again, policies vary. However, generally speaking, landlord contents insurance won’t cover the loss, damage, or destruction of contents caused by wear and tear. Additionally, cover for accidental or malicious damage or damage caused by theft will usually be void if your rental property is left unoccupied for more than 90 days in a row.
We always recommend checking the policy’s fine print before signing up to ensure you have the right level of coverage required.
Will my regular home contents insurance cover me as a landlord?
No, regular home contents insurance won’t cover your rental property. There are additional risks associated with letting a property, such as tenants causing malicious damage to your contents. If you try to cover these with a standard home contents insurance policy, your claim could be rejected, which, in turn, could leave you on the hook for a hefty repair bill.
When might contents insurance not be necessary for landlords?
Landlord contents insurance can provide extra financial peace of mind should the furniture, appliances, fixtures, and fittings you supply suffer accidental or malicious damage. It’s particularly important if the value of your contents outstrips the total value of the security deposit.
However, it won’t be necessary for every landlord. For example, if your property is entirely unfurnished, contents insurance might be an additional expense you can do without.
What’s more, your tenants are responsible for having contents insurance in place for their belongings. It’s worth restating this with new tenants to ensure everyone is on the same page.
What other types of landlord insurance do I need in the UK?
You might need a few different types of insurance as a landlord in the UK. These include:
- Buildings insurance: This covers the cost to rebuild or repair damage to the outside of your building from disasters like storms, floods, and fires.
- Liability insurance: This protects you against damage or injury suffered by tenants or visitors due to faults in your property.
- Legal protection insurance: This covers legal expenses, loss of rent, and rent recovery in case of disputes and evictions.
Read more: What Landlord’s Insurance Do I Need? (In-Depth Guide)
Howden’s Let Property Insurance (provided by Protect My Let) bundles all this and contents insurance into a tailored insurance policy for your rental property. Whether you're managing a single property or a multi-property portfolio, our team goes above and beyond to ensure your insurance policy is right for you. Find out more here.
Is it illegal for a landlord not to have insurance?
No, it’s not illegal for a landlord to not have insurance. However, it’s highly recommended that you protect your building, its occupants, and any contents you provide. Without landlord insurance, you could be liable for costly repairs, legal fees, or damage caused by tenants. You also won’t covered for public liability and third-party claims.
Furthermore, while there’s no legal requirement to take out insurance, many buy-to-let mortgage providers may require you to have buildings insurance as part of the mortgage agreement.
3 steps to insuring your contents as a landlord
Taking out landlord contents insurance is a relatively straightforward process. Simply follow these three steps:
- Shop around for insurance providers: The first step is to find insurers that offer landlord contents insurance (or a bundled landlord insurance product). Search online, use comparison websites, or ask for recommendations from other landlords. Check reviews and make a shortlist of the best options.
- Compare different policies: Read through the policies to understand what’s covered and what’s not. Make sure the policies meet your needs.
- Crunch the numbers: Finally, compare the costs and benefits of each policy. Do you need to pay extra for certain add-ons (such as wear & tear or removals damage)? Once you’ve calculated the bottom line cost of each policy, you can choose the one that best suits your requirements.
Alternatively, you can work with a dedicated insurance broker, like Howden, to do the legwork for you. Our brokers can find you a landlord insurance quote tailored to your unique situation.
In summary: Does a landlord have to insure contents?
To recap, you don’t have to have contents insurance as a landlord in the UK. However, if you rent out a part-furnished or fully-furnished property, insuring your contents against accidental or malicious damage could save you a lot of money in the long run.
Make sure you’re covered with Let Property Insurance from Protect My Let
We understand that there’s no one-size-fits-all policy when it comes to landlord insurance.
That’s why our friendly team of insurance brokers will provide you with a tailored landlord insurance quote that suits your needs. Get the highest level of protection for your rental property and its contents today. Find out more here.