Contents insurance if you rent and have a low income

If you have contents insurance and something goes wrong, like a burglary, leak or fire, you can make a claim to the insurer for any items that are damaged, lost or stolen.

The insurer will then:

• check your claim is valid, and
• work out how much to pay you to buy replacement items or repair any damage. 

You normally have to pay part of the claim yourself (known as an excess), but you usually decide this amount when you take out the policy.

Our guide to contents insurance has full information on what a policy covers.

Here’s how to work out if contents insurance is right for you.

Start by thinking about how much you’d need to pay if something bad happened at your home, like a:

• fire
• flood
• burglary, or
• water leak.

Make a list of all the items you’d need to replace or repair, like a fridge, washing machine or heater. Then look up how much it might cost to fix or buy a new one. You don’t need to list anything that belongs to your landlord – that’s normally their responsibility.

If you’re not sure how you’d afford to pay the total amount, or the thought alone worries you, it’s worth getting contents insurance quotes 

Quotes take a few minutes to get and show the exact cost of a policy – with no pressure to buy.

When asked for the amount of cover you’ll need, enter the cost to replace everything in your home – even if you wouldn’t claim that amount. If you set it lower, you might not get the full payout. For example, if your total belongings are worth £3,000 but you only insure £1,500, you might only get 50% of any future claim.

Alternatively, you could consider just insuring the items that matter to you, like your mobile phone, fridge or TV. But always check exactly what’s covered and if a contents insurance policy offers better value.

Before taking out a new insurance policy and another payment, make sure you’re in control of any existing bills and debts. To help, our free and easy-to-use Budget Planner breaks down your finances so you can track where your money’s being spent.

If you’re struggling, our Bill Prioritiser can help you put your bills and payments in the right order.

These steps will help you compare insurance quotes. Insurers can charge very different prices, so always aim to get as many quotes as possible.

If you rent from your council, local authority or housing association, check if they have made a deal with an insurer to offer cheap cover.

You’ll either pay your landlord directly or a third-party administrator who manages the scheme on behalf of your landlord. 

But before signing up, always get other quotes to see if you could get cheaper or better cover elsewhere.

Comparison sites use your details to get quotes from lots of insurers in one go. You can also use filters to see how increasing the level of cover changes the price – like adding on accidental damage cover.

The policy it shows first might not be the best, so read our comparison site golden rules first.

Remember to only select ‘contents insurance’ when you’re getting quotes – you don’t need to pay for buildings insurance. This is the responsibility of your landlord or social housing provider.

It’s also best to use more than one comparison site to search as many policies as possible. MoneySavingExpert lists the order of the cheapest comparison sitesOpens in a new window and the insurers you’d need to get quotes from directly.

Insurance brokers can also search the market on your behalf.  They’re experts in the insurance market and can often find you suitable cover at a competitive price. They can also help you with any claims you have to make.

Find out more about when to use an insurance broker.

You can also use the British Insurance Brokers’ AssociationOpens in a new window Find Insurance Service, or call them on 0370 950 1790Opens in a new window. 

When you’ve got a list of prices, check the level of cover each policy offers. Make sure you know:

• how much you’d need to pay if you made a claim (called an excess)
• what items in your home are covered, like cash or the contents of your freezer
• if there are any maximum claim limits.

For a full list, see our guide what a good contents insurance policy looks like. If you’re not sure about anything, ask the insurer before signing up.

If you’re struggling to find an affordable policy, try these steps to increase your income:

1. Use our Benefits Calculator to see if you qualify for any support.
2. Use our free and easy-to-use Budget Planner to review your income and spending.
3. See if you can cut any costs with these suggestions:
   1. cancel subscriptions or services you don’t use, or could live without 
   2. see if you qualify for cheaper low-income social tariffs for gas and electricity 
   3. check if you qualify for a Council Tax or RatesOpens in a new window discount
   4. check if you can save by switching providers, like internet and mobile
   5. if you pay credit card interest, consider moving it to an interest-free balance transfer card 
   6. see if you can get cheaper water bills with a water meter (in England and Wales). 

It’s important not to cancel insurance you need – or to miss a payment. Instead, contact your insurer and tell them you’re struggling.

Insurers must support customers in financial difficulty, so they’ll explain your options and ways they can help. For example, they could set up an alternative repayment plan or adjust your cover to match your needs and lower the cost. 

You can ask your insurer to cancel your policy at any time, but there are a couple of things to be aware of: 

• you won’t earn the current year’s no-claims bonus if you cancel midway through
• you’ll usually have to pay a cancellation charge, unless you’ve reached the time to renew. 

If you’ve paid upfront and haven’t made a claim, you’ll receive a refund for the remaining months – minus any cancellation fees.