---
title: Insurance for Foster Carers
description: "Fostering turns your home into a workplace and places a legal duty of care on you. Good insurance is therefore not a luxury but a core safeguarding tool. Three layers apply: 1. **Your own policies** (contents, buildings and―strongly recommended―income protection).…"
url: "https://handbook.co.uk/docs/insurance-for-foster-carers/"
updated: "2025-07-13"
category: Foster Carer Handbook
tags:
  - Insurance for Foster Carers
---

# Insurance for Foster Carers

Fostering turns your home into a workplace and places a legal duty of care on you. Good insurance is therefore not a luxury but a core safeguarding tool. Three layers apply:

1. **Your own policies** (contents, buildings and―strongly recommended―income protection).
2. **The agency’s contingency insurance** – a back-up that helps *only* when your insurer refuses a claim *because of fostering* and you were otherwise fully covered.

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**1 | Contents insurance – non-negotiable**

Imagine a house-fire: the child’s clothes, phone and laptop are gone, along with your TV and sofa. Parents, Local Authority and the child will expect those items to be replaced quickly. You therefore **must**:

- Hold a domestic contents policy that includes **accidental damage**.
- Inform the insurer in writing that you foster (keep the email or letter).
- Record insurer name, policy number, renewal date and the date you disclosed fostering; update the log at every renewal.

Your policy should cover burglary, fire, water damage *and* deliberate damage by a foster child. If after disclosure an insurer still rejects a claim on “fostering grounds,” the agency’s contingency insurance *may* help—but only up to the annual limit and never to remedy under-insurance.

If you carry **no contents insurance at all**, the agency cannot claim on your behalf; you would be personally liable for replacing a child’s lost or stolen possessions.

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**2 | Buildings insurance – homeowners and landlords**

- **Home-owners** must insure the structure; keep the same disclosure and record trail as for contents.
- **Renters** need the landlord’s written consent to foster. Buildings insurance is the landlord’s job, but the agency’s contingency policy can step in (within its limit) if a foster-related claim is rejected.

The current combined cap for contingency cover is **£500,000** (buildings plus contents). Limits are reviewed annually and are not guaranteed.

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**3 | Income protection insurance – highly recommended**

Because foster carers are self-employed, a long illness, serious injury or an extended allegation investigation stops your fostering income overnight. **Income protection insurance** pays a monthly benefit (usually 50–70 % of recent earnings) when you are medically unfit for work *or* temporarily barred from fostering for reasons beyond your control.

**Advantages for foster carers**

- **Stability:** mortgage, rent and household bills continue to be paid if payments from the agency pause.
- **Flexibility:** many policies allow you to set a deferred period (e.g., benefits start after 4 or 8 weeks) to fit your emergency savings.
- **Peace of mind during allegations:** some specialist insurers class suspension due to an allegation as a valid claim, easing financial stress while due process runs its course.
- **Health focus, not money worries:** knowing income is covered lets you follow medical advice or co-operate fully with investigations without rushing back too soon.

While not compulsory, the agency **strongly encourages** carers to explore cover with an adviser who understands fostering. Premiums can often be offset against taxable income in your annual return.

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**4 | Making and recording claims**

1. **Claim on your own policy first.** Provide evidence (photos, police report, receipts).
2. **If rejected because of fostering,** forward the refusal letter to your SSW within 14 days; the Registered Manager will assess a contingency claim.
3. **Keep receipts** for any urgent replacement items—you may be reimbursed once liability is confirmed.
4. **Update the risk assessment** and safer-caring plan to prevent recurrence.

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**5 | Quick reference – what to log and keep**

| **Document** | **Where to store** | **Review cycle** |
| --- | --- | --- |
| Contents & buildings policies, disclosure emails | Insurance section of household file | At each renewal |
| Proof of income-protection cover | Same file; note deferred period and exclusions | Annually |
| Valuations of high-value items (laptops, jewellery) | Digital copies in cloud folder | When item bought or replaced |
| Contingency-claim paperwork | With incident report | After claim closed |

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**Bottom line:** Adequate insurance protects you, the child and the agency. Keep your own policies up to date, disclose that you foster, and seriously consider income protection so a health crisis or allegation does not become a financial one. For full wording, limits and advice contact **finance@positiveaspirations.org** or speak to your Supervising Social Worker.