If you have recently become a landlord, you may be debating whether you should get tenant’s insurance. Although there can be benefits, there are also downsides. That’s why this blog will be breaking down the pros and cons of letting properties without tenant’s insurance.

The team at Bruford and Vallance Insurance Service Ltd are here to help you find the right insurance for you. With the wide range of insurance policies we offer, we’re confident we can offer peace of mind, and a fair price.

What is tenant’s insurance?

Tenants insurance, which can also be known as ‘renters insurance’ or ‘tenants contents insurance’ is a policy that can be taken out on the contents of the property. For a landlord, this could be on furnishings and other contents that they have already provided for the home, for a renter, this could be taken out for the contents they own in the home.

Depending on the insurance provider you go with, there can be variations on what is and isn’t covered, so be sure to compare before making a commitment. 

Is tenants insurance required by law?

Surprisingly, no. It is completely up to the landlord whether they want to insure the contents of the home they are letting. Similarly, renters have no obligation to take out insurance on their own content.

That being said, we would strongly advise considering tenant’s insurance. Simply due to the array of circumstances that you can be covered in. We can never predict when a calamity in the home happens, it’s better to be safe than sorry.

What happens if I don’t have tenants insurance?

Without tenant’s insurance, as a landlord, if there are any issues that take place that destroy or severely affect the contents of the home, they will not be covered. This means you will not receive any money for restoration, replacements, etc. As a renter, the same applies, you will not receive money to replace or repair your content. 

The pros and cons of letting properties without tenants insurance


Understandably, taking out an insurance that isn’t legally mandatory many not seem necessary, and an easy way to save money. But rest assured, there are some particularly poignant reasons that may change your mind.

Here are some pros and cons of letting properties without tenants insurance…

Pros of your property having tenant’s insurance:

  1. The property will be easier to sell if you want to move.
  2. The property will be more likely to sell for a higher price.
  3. The property is protected from fire, theft, vandalism, etc.
  4. The property is protected against liability for injuries to tenants or visitors.
  5. You can protect yourself from liability issues with tenants who may cause harm or injury to others.

Cons of your property not having tenant’s insurance:

  1. The cost of repairing damaged items could get expensive
  2. You might lose money on the sale of the house if you haven’t insured it properly
  3. The property will not be insured against fire, theft, etc.
  4. The property will not have any insurance protection in case of an accident

What does tenant’s insurance cover?

As we highlighted earlier, there may likely be differences in what will and won’t be covered purely on the insurer you opt to go with. But generally, tenant’s insurance will cover the contents of the home. Contents of a home can include, but are not limited to…

  • Furniture 
  • Some personal belongings 
  • Electronics

Please note, that if a renter takes out this insurance in a furnished property they are renting, they can opt for insuring their belongings and furniture, and also insure the contents provided by the landlord. Some rental agreements require tenant’s insurance as part of the agreement.

When it comes to landlords, if they are taking out the tenant’s insurance, they are likely only going to cover the furnishings and insurable contents that they have provided.

What is tenant’s insurance covering against?

So what are the circumstances in which the tenant’s insurance becomes validated, allowing you to be reimbursed for your contents? As we have stressed before, stipulations may vary depending on your provider. But generally, you can be covered against…

  • Fire
  • Theft
  • Malicious damage
  • Natural disasters

How does tenant’s insurance get paid out?

This will vary depending on the situation that has occurred for the insurance to be validated in the first place. Usually, a thorough process takes place which is done to confirm that the contents in question has been affected by the issue it was insured for. 

Let’s use a house fire for example. If you had tenant’s insurance that covered your contents in the occurrence of a fire, after the claim has been made, an agent will work to confirm the damages. 

This may take place in various forms, including communications with the relevant authorities to ascertain if there was a fire, coming to view the contents themselves (if possible). And more. 

After it has been confirmed that the contents has indeed been destroyed or damaged from an occurrence that is stipulated in the insurance agreement, then payment will be discussed.

How to avoid common problems with tenant’s insurance


Unfortunately, there are occasions in which people opt to agree to tenant’s insurance agreements that are not actually suitable for them. To avoid this, here are some key points to keep in mind when looking for a provider of tenants insurance. 

Read the fine print

Be meticulous in reading the details, by doing this, you will know exactly what you are paying for, what the insurance covers, and any stipulations that can invalidate your insurance.

Don’t know? Ask!

Don’t let any big or fancy words intimidate you. Always have someone you can ask questions to. 

Ideally, the person providing the policy should give you thorough and well-explained answers to any confusion you may experience in understanding the agreement. If the person you are speaking to provides this understanding, this is a good sign. 

Alternatively, you can contact your own lawyer, or anyone you know who has expertise in taking out similar policies to help you. 

Ask… Again

We’ve covered jargon that may be confusing, but it is always a good idea to ask if there is any room for negotiation in terms of what you want to cover as part of the insurance. 

For example, if you didn’t want to insure the furniture, but you wanted to insure your electronics, and the agreement stipulates that both are part of the agreement, you’ll be wasting money. There may be instances where the agent you’re speaking to can provide an agreement that is more tailored to your needs. 

Do your due diligence

It would be unwise to sign an agreement with the first insurer you come across. Although it may be time-consuming and tedious, doing some research can be the difference in spending more money than you may actually need to. 

Enquire about tenants insurance today


To conclude, when it comes to making the choice to rent out your home, be sure to do some diligent research before committing your signature anywhere. Finding a worthwhile renter’s policy that covers all possible solutions is the key in setting up a safety net should anything happen. 

That being said, don’t forget that tenant’s insurance isn’t always synonymous with saving money if something does happen! 

We hope to have provided valuable insight and additional information, whilst explaining the pros and cons of letting properties without tenant’s insurance.

The team at Bruford and Vallance Insurance Service Ltd invites you to contact us if you have any queries, our superior service standards mean that we are happy to help you find all the answers you require. 

Alternatively, you can request a quote from us today, and we will respond as soon as possible. 

Bruford & Vallance Insurance Services Ltd
45 St. James Street

Contact Number:
01823 277188