If you are taking a home on rent, you may not bother about insurance, thinking that it is the responsibility of your landlord. Most tenants think that if their landlord has landlord insurance in place, they do not need to purchase an insurance policy. But it is not the case, and if there is fire, flood or any other accident that damages your stuff, you will find that your landlord does not have a responsibility to protect your belongings. If you want to be safe, you have to get your own insurance as a tenant. When you invest in insurance, you can get peace of mind that you are financially protected.
Let’s take a look at what it is and how it can protect you and your belongings.
What is Tenant Insurance?
Tenant insurance is actually content insurance for tenants. It provides a cover if there is theft or damage caused by fire, water leakage, flood or storm. It does not provide cover for buildings or fixtures because it is the responsibility of the landlord to protect the building. It provides protection to your stuff including furniture, clothes, TV, books, DVD, etc.
Do You Need Tenant Insurance?
It is totally up to you to have tenant insurance or not because there is no legal requirement for doing so. However, if you own things that are worth a fair amount of money, you should have insurance in place so that if anything bad happens, you will be financially protected.
Tenant insurance not only provides protection to your contents, but you can also add accidental damage cover to your policies. Some policies also offer liability coverage that helps you when you accidentally cause damage to the landlord’s building or contents. It will help you in paying the cost of repair as well as legal expenses. Some tenants insurance policies also cover the cost of alternative accommodation if your property becomes uninhabitable due to fire or flood.
How Much Does Tenant Insurance Cost?
The cost of tenant insurance may vary depending on the insurance provider, location of your property, type of cover, the value of your contents, claim history and optional extras that you add. Typically it costs around £60 to 90 per year.
There are a number of insurance providers present in the UK. No matter if you are looking for cheap landlord insurance or tenant insurance, you must shop around to know what different providers are offering. Make a price comparison so that you can select the best insurance that meets your requirements.
Whenever purchasing tenant content insurance, you must keep in mind the value of your content so that you can get the required cover. If you do not correctly figure out the value of content, you may be underinsured, and when you make a claim, your insurer will pay only a part of the claim.
