5 things you didn't know or that might surprise you about tenant insurance

Taking out an insurance policy is just one step in covering yourself financially against losses arising from damage or theft. You should also:

• Understand the terms of your policy
• Understand your obligations as the policyholder
• Ensure you don’t do anything to invalidate your policy
• Know how to make a claim

Here are five of the most common things that tenants may not know or misunderstand:

Your landlord’s insurance doesn’t cover your possessions

Landlord insurance usually covers the property and potentially the landlord’s own contents if they have provided items like white goods.

What it does not usually cover is damage to any of their tenant’s belongings. So, if you have any items of value that you want covered against damage or theft, such as a bike, valuable jewellery or a laptop while you’re living in a rented home, you need to take out your own tenant insurance policy.

You must notify your insurer directly about any changes to your circumstances

Regardless of whether you have arranged contents insurance via a letting agent, it is your responsibility to inform your insurer or broker if material information changes, e.g. if:

• You move to a new rental property as the policy won’t automatically move with you
• The value of insured items changes significantly
• Your personal details change – such as your name or your bank account

If any of the details on your policy are incorrect or out of date, it could affect the value of any payout or may invalidate a claim altogether.

The excess on your policy is deducted from your claim before any payout is made

An excess is essentially your own contribution to the cost of repairing or replacing damaged or stolen items. Insurance policies often have two types of excess:

• Compulsory – this is decided by the insurer and is non-negotiable
• Voluntary – this is an additional amount you can agree to pay, in order to reduce your premium

If you make a claim, you are required to pay this initial amount before your insurer steps in to cover the rest. For example:

• Your policy has a £100 compulsory excess, and you opt for a further voluntary £150 excess
• You make a claim for £750
• You would be required to cover the first £250 of the claim and your insurer would pay the remaining £500 (assuming the claim was successful)

You need to make an eligible claim in order for your insurance to pay out

Insurance payouts are not ‘automatic’. As well as first being eligible to make a claim based on the type of loss suffered, you must also follow the required claims process and provide sufficient evidence to support your claim, such as photographic evidence, receipts and a comprehensive description of the damage or theft that occurred.

So, make sure you understand from the outset what steps you will have to take if you suffer a loss and need to make a claim.

Certain things will be excluded from your insurance cover

Each provider and policy is different although there are similarities and every insurance policy will have exclusions – that’s items and circumstances that are not covered. It’s important you check the wording to understand what these are so that you can take extra care and precautions to minimise the chance of damage in these cases, and take out additional cover, if required.

For instance, here are some of the exclusions in our own tenant’s contents insurance policy:

• Theft of bicycles from communal areas around the home is not covered, unless the cycle has been attached to a permanent fixture and immobilised by a security device.
• Accidental damage to audio, video and computer equipment is not covered if it has been caused by chewing, scratching, tearing or fouling by domestic animals.
• The following sports equipment is not covered: Skis (including sticks and bindings), snowboards, water skis, subaqua (diving) equipment, camping equipment, riding tack, sports racquets, sticks, bats and clubs, fishing rods and tackle.

One final point to remember is the insurance you pay for covers you while the policy is active, so you won’t be given a refund if you don’t make any claims.

To discuss your insurance options and make sure you have the right level of cover for your valuable personal belongings, just get in touch. We're passionate about ensuring tenants like you have the protection you need, so contact our team today either online or by calling 01903 890044.

Details considered true at the time of publication.

Bode Insurance Solutions Limited is registered in England (Company no 03101637) Registered Address: Building 1, Meadows Business Park, Blackwater, Camberley GU17 9AB.
Bode Insurance Solutions Limited is authorised and regulated by the Financial Conduct Authority (FCA) under firm reference 313541.

You may check this on the Financial Services Register by visiting the FCA’s website https://register.fca.org.uk or by contacting the FCA on 0800 111 6768.