Nearly half of London’s residents choose to live in rental properties. Renting a home is usually more affordable in the short-term and it means saving on maintenance costs. However, if you’re a renter, you should always keep in mind that your landlord’s home insurance does not cover your personal belongings.
The lack of coverage means you still need to pay for any repairs or replacement if your things are damaged in a fire or other hazards. This is where tenant insurance comes in. Your tenant insurance policy can cover the costs needed to restore your belongings if you have the right coverage.
Choosing the right tenant insurance policy can be confusing because different insurers offer varying types of protection. Learn more about tenant insurance for London renters to ensure you make informed decisions and pick the best policy for your needs.
Why Do I Need Tenant Insurance in London?
While tenant insurance isn’t always mandatory in London, it’s highly recommended that you get coverage for your rented home anyway. Here are some of the most compelling reasons why you should get London tenant insurance:
How Does Tenant Insurance in London Work?
There are three types of tenant insurance policies that you can buy in London. Here’s a basic overview of each type:
What Is Not Included in a Typical London Renters Insurance Policy?
Even if you’ve opted for a highly comprehensive tenant insurance policy, there are some risks that insurers explicitly don’t include as a covered peril. These are called “exclusions” by London insurance companies.
Here are the most common tenant insurance exclusions:
Note that a tenant insurance policy doesn’t cover loss or damage to items that aren’t yours, so it won’t cover a roommate’s belongings or your landlord’s possessions. Also, the list above is by no means an exclusive enumeration of risks typically excluded from a tenant insurance policy in London. Talk to your tenant insurance provider to see what’s covered by your policy in case of loss or damage.
What Determines the Cost of Renter’s Insurance in London?
The cost of London renter’s insurance will vary based on several factors, such as your location, your past claims history, and your rented property’s internal construction. Here are some of the different considerations which may make your renter’s insurance quotes more or less affordable in London:
How Much Does Tenant Insurance in London Usually Cost?
Tenant insurance in London costs $203/year, on average. Tenant insurance rates in London are generally $100 cheaper than the Ontario average renters insurance rate, which ranges between $300 and $360 annually. This means you generally pay around $16-17 per month, a very reasonable fee to protect your belongings from various dangers.
However, $203/year is just the average tenant insurance rate in London. Your tenant insurance quotes may differ from insurer to insurer. Many factors may also raise or lower your tenant insurance rates. Use My Choice to compare tenant insurance policy offers and ensure you find the one that best fits your needs.
A Snapshot of London Renters
How common are renters in London? How competitive is the rental market? Let’s take a look:
According to the 25% sample data presented in the 2021 Census of Population, 41.9% of London’s 174,655 residents are renters. Apartment dwellers are very common in London, with around one-third of the city’s residents living in duplex, low-rise, or high-rise apartments.
The Canada Mortgage and Housing Corporation’s January 2023 rental report states that the London rental market is highly competitive. Vacancy rates for purpose-built rentals are 1.7%, while condo vacancy rates are at 0.9%. The extremely low vacancy rates were caused by increasing demand due to immigration, an influx of students, and high homeownership costs.
The average rent for two-bedroom homes in London rose by 5.8% to $1,393. Stiff competition and high demand for rentals naturally drive higher prices, with new tenants often seeing 25% rent increases compared to previous residents.
How You Can Get Cheap Tenant Insurance in London?
If you’re trying to save money on your preferred tenant insurance coverage, here are some important steps to take:
Who Provides Tenant Insurance Quotes in London?
There are different ways that you can get a tenant insurance quote in London. Here are the four providers that you can use or contact for tenant insurance rates:
FAQs About Tenant Insurance in London
How do I get tenant insurance in London?
You can get tenant insurance in London by looking for an insurer that provides this type of coverage. While processes vary between providers, here’s a general guide:
1. Compare providers: If you already have an insurer, ask if they also offer tenant insurance. They may offer to bundle tenant insurance with your existing policy for a discount. Otherwise, you can start comparing quotes from brokers, agents, direct writers, or aggregators to find the best deal.
2. Provide all necessary information for your application: Once you’ve settled on your desired coverage and insurer, you’ll need to fill in vital information such as identification cards and your rental address. Don’t forget to attach any requested additional documents.
3. Review your application and pay: If you’ve reviewed the policy and are satisfied with the terms, pay your first premium through your insurer’s preferred payment channels.
4. Get proof of insurance: After you’ve paid for your policy, your insurer will give you a certificate of insurance. You can now present a copy to your landlord as proof that you have tenant insurance in London.
What is the cheapest tenant insurance in London as a student?
The cheapest tenant insurance in London as a student costs $203. Note that this is an average quote, but your own premiums may differ due to factors such as property type, desired coverage, and the location of your rental. Use My Choice to compare quotes from different providers to get the best deal for your needs and budget.
Does landlord insurance cover the tenant in London?
No, landlord insurance doesn’t cover the tenant in London. Landlord insurance covers damage to the landlord’s property, their belongings (a.k.a. contents coverage), and liability in case someone gets injured on the rented property. Tenants should still get tenant insurance to cover their possessions in the event of loss or damage, and to have liability coverage if they are responsible for damage to the landlord’s property.
Can a landlord ask for tenant insurance in London?
Yes, a landlord can ask for tenant insurance in London. Tenant insurance isn’t mandatory to rent property in Canada. However, a landlord may require you to get it as a condition in your lease agreement. Failure to comply with your lease conditions can result in eviction, so it’s best to read your lease’s terms and check if you need tenant insurance.
Can a landlord evict you for not having tenant insurance in London?
No, a landlord can’t evict you for not having tenant insurance in London as tenant insurance is not a legal requirement. However, your landlord may evict you if you agreed to get tenant insurance as part of your lease and you fail to do so. Read the conditions of your lease contract carefully, as it’s common for landlords to require tenant insurance.
Is tenant insurance cheaper in London compared to Toronto?
Yes, tenant insurance is cheaper in London compared to Toronto. The average cost of tenant insurance in London is $203 annually, while the average cost in Toronto is $209 annually. Note that your own premiums may be higher or lower than the city average depending on factors like property size and the value of your possessions.