Home Insurance for Tenants
Home insurance for tenants usually just covers the contents as it's the landlord's responsibility to insure the actual building. If you are living in rented accommodation then it is important that you consider home insurance as the landlord's insurance will not cover your possessions from damage or loss.
Personal Possessions and Landlord's Property
Home insurance policies for tenants will usually cover personal possessions, as well as the landlords own goods - ideal if you live in a place that came fully furnished. The amount of cover you will receive will be dependent on the policy you take out. Keep an eye out for insurance firms that include accidental damage as standard. Accidental damage cover means that if you were to have an accident such as break a window, or stain a carpet, the insurance firm will pay out. This is a great feature of home insurance which is recommended to tenants who could end up being liable for a huge bill at the end of their tenancy agreement.
It is worth shopping around for tenanted home insurance because the premium and level of cover will vary from one insurer to the next. If you are living in shared accommodation then some insurance firms will even offer individual contents insurance for each person living at the address- this is ideal if there is a difference in the number of valuable items you all wish to insure.
No Claims
If you are planning to rent for the foreseeable future, then look out for home insurance firms that offer a no claims bonus. This means that you will see a reduction in your premiums for every year that you don't make a contents insurance claim.
New for Old
You should check whether the household insurance policy covers 'new for old' or just standard 'wear and tear'. New for old policies mean that the insurance firm will pay the full cost of replacing the item like-for-like or will repair the damaged item back to its original state. Wear-and-tear policies require the insurer to pay for the repair or replacement of possessions, but with an appropriate reduction for deprecation and wear and tear.
Excess
Most firms that offer home insurance for tenants will require an excess to be paid if you end up making a claim. It is a good idea to compare this cost as it can vary from one insurer to the next and could mean you end up paying through the roof to make an insurance claim.
DISCLAIMER: All content is for guidance only and does not constitute individual financial advice.
www.homeinsuranceinfo.co.uk is not authorised by the FSA to advise on insurance matters.
