In a let-out flat, two sets of property and two liabilities sit side by side – the owner's and the tenant's. A common misconception is that "the flat has insurance, so everything's covered": in reality, the right setup has both parties holding their own cover, because the owner's policy typically doesn't protect the tenant's belongings.
- The owner insures the building, the fitted elements and their own furnishings – having reported the fact of letting to the insurer.
- The tenant can take out cover for their own contents and personal liability – this protects them towards both the landlord and the neighbours.
- Letting the property out is a change you need to report to the insurer: concealing it can backfire at claim time.
The owner's side
As a landlord, the property you need to protect is the building and the furnishings that remain your own (the kitchen, appliances, and in a furnished flat, the furniture too). Important: report the fact of letting to your insurer – how the property is used is part of the risk, and the terms may treat a permanently occupied, a let-out and an empty property differently. The detailed landlord angle – how a deposit relates to insurance, the question of damage caused by a tenant – is covered in our landlord article.
The tenant's side
As a tenant, your own clothes, appliances and furniture are your own risk – the landlord's policy typically doesn't extend to these. You can take out contents cover as a tenant too, together with personal liability insurance: this protects you even when a moment's carelessness – a tap left running, a fire – causes damage to the landlord's or a neighbour's property. Tenant-side details: renting as a tenant.
The intersections: where disputes are born
Three typical dispute scenarios: damage the tenant causes to the building (here the owner's insurer may pay out and then pursue the person responsible – or the tenant's own liability cover may respond); a leak where the party suffering the damage and the party causing it belong to different policies; and the furnishings in a furnished flat, where it needs clarifying whose property was actually damaged. All three are made simpler by a clear contractual split and a home inventory – ten minutes before signing saves weeks at claim time.
The deposit deserves its own note: many landlords treat the deposit as "insurance", but at most it's a buffer worth a few months' rent – a serious fire or water damage claim will outgrow it by orders of magnitude. The deposit is the tool for minor wear-and-tear damage, insurance is the tool for large losses; neither substitutes for the other.
With short-term letting (by the day or week), the picture gets more complicated still: this is even more intensive use than classic letting, and the policy terms may treat it separately – for this kind of plan, checking with the insurer in advance isn't optional, it's a required step.
The right setup – in short
For the owner: building + own furnishings + liability, with the letting reported. For the tenant: own contents + liability. And it's worth writing into the tenancy agreement who insures what – so that neither side assumes the other party's policy will sort it out. If the situation is more complex (short-term letting, multiple tenants), let's talk it through – setting it up is quick, a dispute is not.
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