If you rent, Tenant Liability Insurance might just be the best thing you ever buy. Read on to find out why.
What is it?
Tenant Liability Insurance (TLI) protects a tenant’s deposit should there be any damage to or theft of a landlord’s contents while you’re living in the property.
Depending on the level of cover taken out, a TLI policy can cover the cost of repairing or replacing fittings - such as carpets - furniture, kitchen appliances, such as ovens and washing machines, and even pipes.
This type of cover is particularly useful if you rent a fully furnished property.
What does it cover?
As with all insurance policies, the extent of your cover depends on what you pay. Most basic policies cover only accidental damage, while the more expensive ones will cover fire and flood damage. No policy will pay out for negligence, wear-or-tear or deliberate damage.
Can a landlord force me to buy it?
Increasingly landlords and letting agents are including TLI as part of the tenancy agreement to avoid disputes over deposit and to ensure a landlord’s investment is protected. Many policies will pay directly to the landlord according to the terms set out in a tenancy agreement.
A landlord or agent can never force you to buy from a particular insurance company - you have every right to shop around for the best deal.
How much does it cost?
Naturally the cost varies depending on how much cover you are looking for; most policies offer a level of cover of between £2,500 and £10,000. The cost will also vary depending on whether they cover just accidental damage, or include fire, theft and flood damage. You can buy TLI as a standalone policy, but are usually better value if it is included into a home contents insurance policy.