After you’ve spent so much time looking for a property to rent and paid your deposit and first month’s rent, contents insurance could well be the last thing on your mind. Having adequate cover in place can protect you in the event of something unexpected happening.
1. Do You Need Contents Insurance?
The obvious answer to this is yes, but you’d be surprised at the number of tenants who think it’s covered under their rental agreement or simply don’t feel it’s worth it. While the landlord will have buildings insurance, this does not cover the loss or damage to your personal possessions. Most people don’t realise the real value of their own property – until it’s stolen, damaged, or broken and needs to be replaced.
It’s also worth noting that some policies include liability cover, which protects you if your actions inadvertently damage the landlord’s property or injure someone in the rental property. This additional layer of protection can provide peace of mind in case of unforeseen incidents.
2. Do Your Research and Shop Around
It pays to do a little research on what sort of cover you need. Insurance for renters is often designed specifically for people renting a property. Moneysupermarket.com suggests taking out dedicated insurance tailored to tenants. Take the time to find out about premiums, excesses, and what’s covered and what’s not.
Be sure to check if the policy includes alternative accommodation. This feature can cover the cost of temporary housing if your rental property becomes uninhabitable due to events like fire or flooding. Northwood offers a specific tenant’s insurance—click here to get a quote.
Our other big tip is to shop around. This is a lot easier nowadays because of price comparison sites. Be careful; the cheapest offer is not necessarily the best. Make sure you compare like-for-like and that you take a close look at the policy documents and what they cover.
3. The Cost of Replacing Your Possessions
A student moving into digs is more likely to have fairly few items to insure. They could have a laptop and a TV, maybe a mobile phone. However, the average family home will have an awful lot more to consider. Start by listing everything you own. Check online for how much it would cost to replace these.
Note that most policies are “New for Old,” which means in the event you lose your personal belongings, they are replaced with brand-new items. This should give you a good idea of what level of coverage you require. For renters, it’s also worth checking whether policies offer accidental damage cover, as this can make a significant difference in what’s reimbursed.
4. What Impacts the Cost of Contents Insurance?
There are a few things that will increase or decrease the amount you pay for contents insurance. The area you live in and its crime rate are just two. Whether you live in a flat or house is another.
The options you choose can impact the premium cost. For example, if you want to insure high-risk or high-value possessions such as mobile phones, jewellery, and bicycles when you are out of the home, this will typically cost more. Additionally, policies with features like alternative accommodation or comprehensive liability cover may have higher premiums but provide greater security.
5. More Expensive Items
Some of your possessions may well be covered in the general insurance schedule, but if you have more expensive items, then you may need to detail them when applying for cover. This can include things like computers, TVs, or mobile phones. Take the time to check the limit on these high-worth items, as you may need to list them separately. Review the policy documents carefully to confirm whether they’re adequately protected.
6. The Excess
The cost of your insurance will reflect the excess. This is the amount that you need to pay if you make a claim before the insurance company pays out their share. The higher the excess, the lower your premium should be. You need to make sure that you can cover the cost of any excess in the event of a claim. If you’re unsure, opt for a policy with a manageable excess while still providing a sufficient level of cover.
7. Adding Accidental Damage
Your insurance policy will cover you for events that damage or cause the loss of your property that are not your fault. It can be a good idea to add accidental damage cover, which includes other eventualities that may be your fault. In some policies, it is included; in some, it’s not. Read each policy carefully when you are comparing them to confirm that all your personal belongings are protected.
8. Your Landlord’s Property
Finally, you may be moving into a home where there are fixtures and fittings supplied by the landlord, such as a cooker and freezer, even carpets, lighting, and furniture. You can add cover to pay for accidental damage to these caused by you, which you will have to recompense the landlord for in the event they are damaged. This helps you meet the terms of your tenancy agreement and avoid unexpected costs.
Final Tip:
Before choosing a policy, always review your tenancy agreement to make sure you’re clear on your responsibilities as a tenant. Protecting your personal possessions, opting for sufficient liability cover, and checking for added benefits like alternative accommodation or accidental damage cover can save you significant stress and financial burden in the long run.
