What is contents insurance?

Contents insurance is a type of cover designed to protect your belongings within a residential property. For landlords, this typically applies to items you provide as part of the rental agreement, such as furniture, appliances, carpets and light fittings. This insurance safeguards against costs if your items are stolen, damaged or destroyed due to incidents like fire, flooding, theft or vandalism in rental properties.

For instance, if you rent out a furnished property and fire damages your furniture, contents insurance can cover the cost of replacing those items, helping you get your property back in order quickly.

Landlord contents insurance can be tailored to suit the specifics of your rental properties, providing the right level of protection without paying for unnecessary extras. Many policies also offer the option to include accidental damage cover, providing an added layer of security in case a tenant accidentally damages your belongings, such as spilling red wine on a sofa or breaking a light fixture.

Additionally, some contents insurance policies for landlords can include public liability cover, which protects you if a tenant or visitor is injured due to your belongings, such as a piece of furniture collapsing. This cover can help with legal costs if you are held liable for the incident, giving you peace of mind in the often unpredictable environment of residential property letting.

In cases where severe damage makes the property uninhabitable, some contents insurance policies offer alternative accommodation cover for your tenants. This feature helps cover the cost of temporarily housing your tenants while repairs are underway, keeping your rental operation smooth and reducing disputes.

Why have contents insurance if it’s not mandatory?

Yes, contents insurance is recommended if your property is furnished or part-furnished, as it helps cover the cost of repairing or replacing items you own as the landlord. This type of insurance can offer financial protection in case of accidental damage, theft or other unexpected events affecting the contents in your property.

What isn't covered by contents insurance?

While contents insurance is a helpful tool, it’s not all-encompassing. Here are some key exclusions:

• Tenant’s possessions: your contents insurance policy won’t cover items that belong to your tenants. If they want coverage for their belongings, they will need to arrange their own tenants' insurance.
• Structural damage: contents insurance does not cover structural elements like walls, roofs or any damage related to the building’s integrity. For this, you’ll need buildings insurance.
• General wear and tear: insurance won’t cover damage that occurs due to normal use or ageing. For example, if a carpet wears thin over time or a sofa shows signs of prolonged use, this won’t be covered.
• Unoccupied property: if your property is left unoccupied for extended periods, often over 30 or 60 days depending on the policy, you might not be covered unless you have specifically arranged for unoccupied property insurance.
• High-value items: if you’ve furnished the property with high-value items, these might exceed the single item limit of your policy unless you declare them separately. Always check the terms if you have luxury fittings or valuable appliances.
• Acts of negligence: damage due to neglect, like failing to maintain the property or allowing unsafe conditions, is not covered. As a landlord, you are responsible for keeping the property in a safe and habitable condition.

Understanding these exclusions will help you avoid unexpected surprises when making a claim. Always read the fine print and ask questions if any aspects of the coverage are unclear.

Can I use regular home contents insurance?

Using regular home contents insurance for a rental property is not advisable. Most standard home contents insurance policies are designed for owner-occupiers, not landlords. If you try to claim under a standard home insurance policy, insurers could reject the claim because the property is being rented out, which changes the risk profile.

Landlord-specific contents insurance is tailored to the rental market, taking into account the risks associated with tenants living in the property. This includes the higher likelihood of accidental damage, the potential for different tenants over time and the use of the property for income generation. Insurers know that rented properties are subject to different risks, and landlord insurance is priced and structured accordingly.

Using the correct type of insurance helps avoid policy invalidations and ensures that your claims are more straightforward. Insurers may also provide additional landlord-specific benefits, such as loss of rent cover if your property becomes uninhabitable due to a covered event.

Seek personalised landlord’s advice

At AST Assistance, we understand that no two landlords are alike. Your property, tenants and circumstances are unique, so a one-size-fits-all approach to insurance simply doesn’t work. That’s why we recommend seeking tailored advice to ensure you’re getting the right level of cover for your needs. Our specialists will guide you through the available options, helping you secure insurance that matches your specific requirements without unnecessary extras, while meeting your landlord obligations..

Insurance needs can change as your property evolves. Whether you’re updating furnishings, making improvements, or switching from a part-furnished to a fully furnished setup, review your policy regularly. A quick check-in with your insurance provider can keep your cover aligned with your current situation and prevent any gaps that could leave you exposed.

Contents insurance may not be a legal requirement, but it’s a valuable way to safeguard your investment against the unexpected. Even in properties that seem low-risk, accidents happen, and having the right cover can mean the difference between a minor inconvenience and a significant expense.

If you need further assistance with landlord insurance covers or want to know more about legal protection, get in touch with AST Assistance today by calling us on 01706 619 954 or by using our contact form.