If you’re new to renting or owning your own home, you might be wondering, “what is home insurance?” 

Home insurance protects you against the cost of accidents and disasters at home. For example, if a fire breaks out and damages your house, flat or possessions, home insurance will pay for repairs and replacements. 

Like all insurance, home insurance can be expensive so it’s important to take out the right type of policy for your needs. This will save you paying more than you need to, while also increasing the likelihood that the insurance company will uphold your claim. 

Please note that Cobbles are estate agents, not an insurance company. Please check the exact wording of any policy you take out to ensure that it gives you the cover you need. 

What home insurance do I need if I am a tenant?

While there is no legal obligation for tenants to take out an insurance policy, it’s still a good idea to insure your possessions. This is because, if the landlord has insurance on their property, this insurance does not cover tenants’ possessions. If you have a break-in, for example, the landlord would be able to claim for any damage to the property but not for the tenants’ valuables. Instead, protect your property by taking out contents insurance. Some insurers call it “tenants’ insurance” while others call it “contents insurance.” However, the important thing is that it protects your stuff and pays to replace it if disaster strikes. 

If you’re a tenant and you’re looking for an insurance policy, remember that you don’t need buildings insurance. Taking out contents-only insurance will usually save you money on your premiums. Nearly all insurers offer optional extras like covering legal costs or accidental damage. Before you commit, read the small print, compare prices and consider whether you are likely to need additional cover. 

Above all, remember that policies vary. If you’re in any doubt about what a policy covers, check it thoroughly or contact your insurer. 

What insurance do landlords need?

Landlords, like tenants, are not obliged to take out insurance. However, taking out landlords’ insurance is a good idea because it protects your investment. Some policies also cover you for loss of rent, if, for example, the property is uninhabitable because of flooding. 

Remember to check that you have the right policy for your needs. Traditional home insurance is not suitable for landlords, because it is designed for people who live in the house they own. For example, as a landlord, you rely on tenants reporting problems; you can’t see them for yourself. Another difference is that the property might be empty between tenancies, increasing the risk of break-in or damage. 

If you have traditional home insurance for a property you let, you might find you are not covered if you try to make a claim. If you let a property you used to live in, remember to check what level of insurance you have and upgrade to landlord insurance if you need to. 

Traditional home insurance doesn’t cover the increased level of risk associated with owning a property you don’t live in. For this reason, you need specific landlord insurance. As with all insurance policies, you should check what they cover before you commit, to make sure that you are fully covered and ready for any likely scenario. 

Some landlords also choose to take out liability insurance. This will cover landlords for costs associated with accidents that happen inside the rented property, like a tenant tripping on uneven flooring and claiming compensation. 

Find out what information landlords need to provide here.

What insurance do homeowners need?

If you have just bought a home and will be living in it full-time, it’s a good idea to insure it. Your house or flat is probably the biggest purchase you will ever make and you can usually protect it for a fraction of what it would cost you to replace. 

Most homeowners choose buildings and contents insurance as one package, covering the building itself as well as the personal possessions inside it. Again, insurers will promote optional extras like legal cover and accidental damage – read the small print, think about your lifestyle and work out whether these extras make sense for your circumstances. 

Protect yourself and your investment

Just because you have insurance, it doesn’t mean that you can be irresponsible. Insurers are unlikely to pay out if you left your door unlocked on the night of the break-in, for example, or if you knew there was a plumbing leak and didn’t address it. Be a good homeowner or a good tenant – it should lower your insurance premiums! 

Keep your home insurance documents safe in case you need to claim. Keep a note of your insurance company and policy number on your phone, or ask a friend to keep a copy for you. That way, if you need to make a claim but it’s not safe to enter the property, you still have the right information when you contact your insurance company. 

Let property in Guildford

If you have property to let in Guildford, we hope you’ll consider Cobbles. Our experienced team love helping landlords find the right tenants, drawing on our local knowledge and property expertise. Explore our landlord pages to find out more or get in touch on 01483 457 000 – we’d love to hear from you.