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Insurance and practical considerations

When fostering, it’s important to review your insurance arrangements so you are fully covered should any incidents occur. This includes ensuring your home and car insurance policies cover fostering and the children or young people living in your household. You should also consider coverage for their belongings.

Most insurers will treat fostered children as household members once you notify them, so it is essential that you inform your insurers in writing (e.g., by email) and keep their confirmation for future reference.

Common Areas to Review

When checking your insurance policies, consider:

  • Accidental damage cover
  • Any previous claims linked to children or young people
  • That your insurer has formally acknowledged your fostering role
  • Cover for the child or young person’s belongings
  • Cover for wilful or intentional damage
  • Any personal cover relating to allegations or complaints
  • The level of legal expenses cover

There is legal precedent in England that foster carers may be held liable for damage caused by a child or young person only if the carer is found to have been negligent. This may include damage to another person’s property or injuries caused by a child or young person in placement.

Legislation under the Criminal Justice Act allows fines for offences committed by children to be directed at parents or guardians; however, foster carers are specifically exempt, as confirmed by the Home Office.

The potential for liability highlights the importance of maintaining suitable insurance at all times.

If a child or young person, or their family, carries out a physical attack, this is generally not covered by standard household insurance. If such an incident occurs, please notify Sunbeam Fostering Northwest so we can review the support available through our insurance policies. You may also contact the Criminal Injuries Compensation Authority (CICA) directly.

Allegations can occur in fostering and may relate to concerns such as neglect or abuse. Allegations may come from a range of people, including parents, children or young people, birth children, teachers, or social workers.

Most allegations are found to be unfounded, but carers still require support and legal protection. To assist with this:

  • Sunbeam Fostering Northwest provides membership of FosterTalk, which includes:
    • Legal insurance for allegations for you and your household
    • Access to solicitor support
    • Specialist guidance, including support if an allegation progresses to an interview under caution

Your Sunbeam Fostering Northwest team will also provide support, depending on the nature of the allegation. This is covered during your induction and ongoing training.

Important: Insurance must be maintained continuously. Allegations may arise in the future relating to past events, and cover only applies if your policy is still active.

Your home insurance must be updated when you begin fostering to ensure it covers circumstances relating to children and young people placed with you. Types of potential damage include:

  • Accidental damage
  • Theft
  • Physical attack or aggressive behaviour
  • Malicious damage

Insurance policies vary, and many do not include the correct wording for fostering-related incidents unless this is agreed in advance, often requiring an additional premium. Please check your policy carefully with your provider.

  • Homeowners must ensure both buildings and contents insurance reflect fostering.
  • Renters must ensure their contents policy is updated and notify their landlord where required.

Keep written confirmation (email) from your insurer for your records.

Specialist insurers familiar with fostering may offer better-suited policies, including cover for malicious damage. Always review any excess charges.

Sunbeam recommends obtaining quotes from multiple insurers to compare costs and cover.


Additional Areas to Consider

When speaking with insurers, keep in mind:

  • Any history of damage caused by children or young people
  • The number of children you are approved to care for and their expected age range
  • Never sharing confidential or personal information about children or young people
  • The difference between rebuild cost and market value for buildings insurance
  • The level of legal liability cover included

If the children or young people in your placement change, or if your personal circumstances change (e.g., going on hold), update your insurer accordingly.

If a child or young person has additional needs or disabilities, consider whether extra insurance is required.

Always monitor your renewal dates to ensure your policy does not lapse.


When a Young Person Turns 18

Turning 18 typically marks the end of the fostering placement. The young person becomes an adult household member, and your insurance must be updated. This applies alongside any “Staying Put” arrangements.

If a child or young person, or a member of their family, carries out a physical attack, this is generally not covered under standard household insurance. If such an incident occurs, please inform Sunbeam Fostering Northwest so we can review any available support through our insurance arrangements. You may also contact the Criminal Injuries Compensation Authority (CICA) directly.

If you own a vehicle and use it to transport a child or young person, you must have appropriate motor insurance in place.

Please ensure that you:

  • Notify your insurance provider that you are fostering
  • Confirm your policy covers transporting children and young people as part of fostering
  • Obtain written confirmation of any policy changes

Local Authorities or social workers may request evidence of your car insurance, and Sunbeam Fostering Northwest will also check this as part of our compliance process.

Most standard motor insurance policies exclude damage caused by a child or young person, so you may need to add this cover and consider any excess that applies. As with home insurance, keep written records of all updates.

When transporting children or young people, please ensure full compliance with seat belt laws and vehicle safety requirements. The driver is responsible for ensuring all passengers have a working seat belt, and the number of passengers must not exceed the number of seat belts available.

This content is provided for information purposes only. We recommend you take specific advice where needed for your insurance cover and ask any questions where relevant.