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:
- Your own policies (contents, buildings and―strongly recommended―income protection).
- 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.
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.
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.
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.
4 | Making and recording claims
- Claim on your own policy first. Provide evidence (photos, police report, receipts).
- If rejected because of fostering, forward the refusal letter to your SSW within 14 days; the Registered Manager will assess a contingency claim.
- Keep receipts for any urgent replacement items—you may be reimbursed once liability is confirmed.
- Update the risk assessment and safer-caring plan to prevent recurrence.
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 |
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.
