More and more people are turning to renting as a means of homeownership. Whether you’re a young adult looking to leave the nest, a student or simply looking to downsize, it’s easy to understand why the rental sector continues to grow.
As a tenant, your responsibilities to the property are slightly different to that of the homeowner – especially when it comes to your insurance.
So, what kind of insurance do I need?
The main policy you would be well advised to purchase is a contents insurance policy.
Firstly, many landlords/property managers will request that you have a contents insurance policy before you move in. This is mainly to ensure that there are no disputes should you damage your personal items in their property.
Secondly, it’s just common sense. Whilst you might be able to replace your TV when it breaks or have an item repaired, can you afford to replace everything you own should you be the victim of a fire?
A standard contents insurance policy can protect the following:
• Antiques and family heirlooms.
• Any gadgets, appliances and electronics.
• Books, CDs & DVDs.
• Cutlery and Crockery.
• Furniture/Soft Furnishings.
• Jewellery.
• Your bicycle.
• Your Clothes.
There is no limit on how many items you can cover (as long as a single item’s value isn’t above a certain amount). That means if you have a treasured collection or a valuable gadget, you’ll always be covered.
In some cases, a contents insurance policy also covers your property for when you move. This means if something is lost, stolen or damaged during the moving process, you can make a claim for it.
Do I Need Building Insurance?
As you do not own the building, it is the landlord’s responsibility to ensure that the building, fixtures and its structure are protected. If the pipes have burst or damp is causing mould, that’s not your problem – it’s the landlord’s.
Additional insurance
Accidental damage cover is a good insurance extra for that added sense of peace. This cover is sometimes included with a contents policy. If you drop your phone on the floor or in the bath, then you will be grateful you had extra cover.
Of course, accidents do happen. You might spill a drink on the carpet or leave a mark on the wall. To protect against this kind of issue, another great policy is tenants’ liability cover. This way, you have financial assistance should you cause serious damage.