Rent and Credit > How does content insurance for renters work in the UK?

How does content insurance for renters work in the UK?

Wollit Team2 minute read · Updated 23rd July 2024

Tenant content insurance in the UK is a kind of insurance that covers the value of the items in the room, flat, or house that you’re renting. This insurance is usually bundled as part of a tenant insurance package to protect both renters and landlords against damages to their items.

While you’re not required by law to get this insurance, it’s a good option to protect your belongings and give you some peace of mind.

Here is how it works.

What is covered by tenant contents insurance?

Tenant insurance usually covers a wide range of items, including:

Personal belongings, like clothes, jewellery, furniture, electronics, and other valuables.
Cash: some insurance policies also travel cash in your home, if it gets damaged by a natural disaster or stolen by a burglar.
Tools and equipment in your garden or shed, up to a certain amount.
Home office equipment: this includes items used for work, such as computers and printers.
And, most important of all, your liability as a tenant. This covers accidental damage to your landlord's property, such as windows, walls, furniture, and electronics.

What is not covered by tenant contents insurance?

Lots of things are not covered by tenant insurance:

Bicycles, if they were stolen from outside your home or from your garden, especially if they were not locked securely.
Any motor vehicles, from cars to motorcycles and caravans.
Lost items: the insurance does not cover items that are misplaced or accidentally lost. Don’t be tempted to lie to the insurance provider – this would constitute insurance fraud and you might end up in jail.
Natural wear and tear: most policies do not cover the cost of repairing breakdowns or wear and tear.
High-value items. Insurers usually have a “single-item value limit”, which is the maximum amount they will pay out for an individual item. This is often between £1,000 and £2,000, so if you have items worth more than this, you would need to let the insurer know about them.

Does tenant insurance affect my credit score?

Not really, since tenant insurance payments are not recorded in your credit file. However, tenant contents insurance is not completely disconnected from your credit score:

Having insurance can save you from having to take out a loan or use your credit card to pay a large lump sum in case something breaks in the flat while you’re living in it. This could potentially affect your credit score, and might even mean you get evicted.
A good credit score can lead to lower premiums for tenant insurance, while a poor credit score may result in higher premiums.
In some cases, a landlord may require a larger security deposit if you have a lower credit score. Tenant insurance can help lower this requirement by showing that you are willing to invest in protecting your rented space.
Getting tenant insurance usually does not require a credit check. However, sometimes landlords will ask to run one. Having tenants insurance can help them waive this requirement as well since they’ll be less worried about you.
It’s also possible that in the future insurance payments can be added to your credit report. Experian has a service called Boost which in the US allows for insurance payments to count towards a “boosted” version of the score. While in the UK this Boost service is more limited, it’s possible Experian will expand it at some point.

In short, tenant insurance won’t affect your credit rating either way. The main reason for you to get it really is financial protection and peace of mind.

Some of the best tenant insurance companies in the UK are:

Urban Jungle;
Admiral;
And GetSafe.

And if you’re looking for a way to increase your credit score, consider downloading a credit-building app like Wollit.

Wollit is an app available both on Android and iOS, and it works by reporting a fixed-fee monthly subscription as a loan repayment to all three credit reference agencies. This helps you build your credit history and directly influences your credit score.

On top of this, Wollit can also report your monthly rent payment to Experian. This can add another line in your credit report that shows lenders that you’re reliable and pay your bills on time, helping you make the most of your rent while you prepare to someday become a homeowner.