Does renters insurance cover if I sublet?

Subletting apartments and rooms has become increasingly common in the current, tight rental market. Particularly favoured by students and working professionals taking time away from city life in the summer, subletting is a great way to keep your rent paid and still keep a hold of your residence. While many people know they need to notify their landlord before welcoming a sub-tenant, most forget the importance of speaking with their insurer.

Why is my renters insurance important?

Before subletting your important you should check with your insurer that your coverage stays the same under the circumstances. Quite often people who sublet leave some of their belonging in the apartment, such as furniture or large electronics, and you want to be sure that they are protected from both damage and theft.

Quite often insurers are more than happy to keep your policy the same-this is especially true if you aren’t someone who sublets on a frequent basis. If you are a bit of a serial sublessor, then you may need to take out a different kind of insurance policy that is more akin to a landlord’s policy. However, occasionally insurers will revoke your coverage against theft while subletting, as the risk of theft increases when you welcome someone into your private space without your supervision.

Yourrenters policy protects against more than just damage or theft of your personal items, it also offers some liability coverage for you. Usually this is incase someone who is visiting your property is accidentally injured and they decide to file a claim, or need reimbursing for any medical treatment. In the case of a sublet, you are still classed as liable, so if the person you sublet to is injured on the property you need to be protected against any potential claims headed your way.

Does my landlord’s insurance cover if I sublet?

The owner of your property, most likely your landlord, should have their own insurance policy which protects the actual structure of the building that you live in. Although they are liable for maintenance and any accidents that occur as a result of the building, for example if there was a fire caused by faulty electrical wires, they are not liable for your personal property or belongings. This remains the same in a sublet situation.

Despite this, it is still vital that you speak with your landlord before you agree to sublet your property.

Long-term sublets

Are you a student who is heading back to your hometown for the summer, or perhaps you’re off on a backpacking adventure for a couple of months? Then the likelihood is that a long-term sublet would be the option for you.

If you decide to sublet your room or apartment, it is vital to know that it is the primary tenant who remains completely responsible for the dwelling, even if you aren’t in the country. In order to make sure that the person you sublet to looks after your property, and makes the correct payments, it is recommended that you draw up a sublet agreement prior to their move in date.

Speak with your insurer to let them know that you will no longer be residing in the property-it is up to them whether they agree to continue to honour your renters policy or not.

Short-term sublets

These days short-term sublets are all the rage, thanks to the popularity of home share websites such as Airbnb and Homeaway. They can be a great way to maintain your space if you are out of town, or to earn a bit of extra cash, but you should always be cautious about who you allow into your space, and should ensure that you are adequately covered.

If you want to participate in a homeshare, you should first let your landlord know about your intentions. Furthermore you should notify your insurer, in case you need to extend your policy. While many of these websites offer their own host protection insurance, they will only act as primary insurance coverage for incidents relating to the stay, so you need to make sure you’re protected against any unforeseen mishaps.

If you have decided that subletting is for you, but aren’t happy with the coverage provided by your current renters insurance, there are plenty of options on the market so it's worth looking around.