Tenants insurance is specifically for those who rent a property. It is definitely a beneficial policy to have. Since you do not own the property you live in, it is good to have protection in a different form. Just take a look at the benefits this type of cover offers.
When looking for a policy, you must always keep in mind that levels of cover will vary. You should try to find one that not only fits your needs, but also your budget.
Generally speaking, a full tenants’ insurance plan protects against a range of disasters: theft, flood, fire, water leakage and storm damage.
Legally, you’ll still be fine without renters or tenants’ insurance. But getting your valuables back will be a lot more hassle.
What’s covered by tenants’ insurance?
Absolutely everything you keep in your home is covered by tenants’ insurance. So, you can protect all your valuables. If you’re unsure of the accumulated value, a contents calculator can be a helpful tool. Generally speaking, things like sports equipment, electrical goods, musical instruments, DVDs, CDs, furniture, clothes, gaming consoles and even frozen food.
For items that carry high value (your work computer, jewellery, watches, etc.), creating a separate list is a good idea. You may even need to take out personal possessions cover.
What about tenants insurance for students?
This is pretty great news for students. There are dedicated tenants and renters’ insurance policies geared towards students. However, a standard contents insurance policy will also be suitable. There is also tenancy liability insurance which can help to pay for any necessary repairs – in turn, you won’t lose your deposit.
This usually isn’t part of regular contents insurance – but it can often be added as an extra.
Shared accomodation – Cheap home contents insurance for tenants
It is possible for tenants to find cheap home contents insurance. Generally, insurers will demand much higher premiums if you live in a shared accommodation. This can severely limit your choices – especially if you are on a budget. However, there’s no reason to despair just yet. Tenants can do a couple of things to prevent this and get cheap contents insurance for their home.
The windows of your bedroom and doors should have their own locks (you should also be able to identify them). This will assure your provider that you’re far less likely to get burgled.
Tenants insurance and getting a quote
It is important to know your home like the back of your hand if you want to get a quote. When getting tenants insurance, you may be asked about how you came to rent the property. This could be:
- Renting from a housing association.
- Renting a private tenant.
- As a council tenant.
- Sharing the accommodation with others.
Tenants insurance excess – Choosing the right one
In addition to a quote, you will also receive an excess. An excess is the contribution that you will agree to pay towards a claim. Your insurance provider will often give you a lower premium if you agree to pay a higher excess on your tenants insurance. Excess normally comes in two forms: voluntary and compulsory.
Compulsory excess is what the insurance company requires you to pay when you make a claim. Voluntary is what you yourself agree to pay – in addition to compulsory excess.
What about exclusions?
Telling your provider that you have a burglar alarm when you don’t.
- Failing to report theft/burglary to the policy and not getting a reference number for the crime.
- Not using key-operated locks on windows when you’re away from your home.
- Burglary without forced entry onto the premises.
Keeping an eye on these details will ensure that you’re covered -and that you don’t suffer from any financial losses.