When you rent out a property, clearly you need to take out insurance for the building itself, to cover you in the event of damage to or destruction of the house or flat. In case there was a fire or something else that might obliterate the building completely, you need to take out sufficient insurance to cover the entire cost of rebuilding, including permanent fixtures and fittings. What happens regarding contents, though?
The landlord’s contents
Partly, the answer lies in whether you let the property furnished or unfurnished. Whether you rent out furnished rooms, such as the kind of study bedrooms often let to students, or a whole furnished property that may be rented out to a family or group of friends, it’s not mandatory to insure those furnishings that belong to you, but it’s certainly advisable.
The tenant’s contents
Any contents belonging to the tenant or tenants are their responsibility. While it is not compulsory for tenants to take out insurance, and the landlord does not have to insist that they do, it is wise for them to insure any furniture or other belongings if they want to have cover in the event of a fire, flood, burglary or other cause for claim.
What is covered
Contents insurance covers furniture and soft furnishings like cushions and curtains, electrical appliances like TVs or washing machines, kitchen or entertainment gadget such as a coffee maker, iPad or games console, and personal belongings like clothes, jewellery, music CDs or vinyl LPs, videos or DVDs, and books. It also includes cutlery and crockery, and can cover valuables like antiques or pedal cycles.