If you live in a rented property, you don’t have to worry about insuring the bricks and mortar. That’s the job of the landlord. But that doesn’t mean you don’t need any insurance at all. Your landlord won’t insure your personal belongings, so you have to do it yourself. You need to take out a type of contents cover called tenants insurance, which protects your stuff against nasties such as flood, fire, theft and accidental damage.
Even if the flat is furnished, you probably still have plenty of stuff that needs protecting, such as your TV, stereo, laptop, iPod, mobile, music downloads, clothes and, if you have one, the contents of your handbag (and the bag itself, of course). A good policy should also protect any items belonging to guests or visitors while in your home.
Cover in a flatshare
If you share a flat with friends, you need to decide whether to protect just your own belongings, or take out a joint policy that covers your flatmates as well. A joint policy may be slightly cheaper, but it can be a bit of a pain. You have the trouble of changing names on the policy deeds if one of your flatmates leaves, plus you have to trust your chums to pay their share of the policy premium. In many cases, it is simpler to go it alone.
First, decide how much cover you need. Carefully tot up the value of replacing your belongings, you might be surprised to discover how much you’re worth!
You can buy cover for contents worth anything anything between £3,000 and more than £100,000. The more cover you need, the higher the premium, but don’t be tempted to under-insure or you could pay a heavy price when you claim. If your insurer discovers you bought, say, just 50 per cent of the insurance you need, it will only pay 50 per cent of any claim, regardless of its size.
Look for a policy offering “new for old” replacement, so you get the full cost of replacing damaged or stolen goods. Don’t buy cover you don’t need, you’re just wasting money - but make sure you do cover everything of value. If you have a large collection of music downloads you could be seriously out of pocket if your computer crashes, so you must cover that.
Keep a lid on costs
You can cut your premiums by taking a large excess on your policy, so long as you can afford to pay it if you do need to claim. Beware making frivolous claims on your policy, some tenants policies often no-claims discounts of 30 per cent or more. And make sure your landlord has fitted the correct door and window locks, or your insurer may refuse to pay out following a burglary.
You should also consider paying a little extra for accidental damage cover, which gives you valuable protection against clumsy guests and excitable children.
Are you always misleading your keys? If that happens to you while renting, your landlord is likely to bill you for the cost of repairing or replacing any locks. Many tenants insurance policies will cover the cost.
Extra protection
You should also consider insuring your possessions for when they are outside your rented flat, when you’re out and about or on holiday. You do this by extending your policy to cover “all risks”. You could also think about looking for an extended household applicance warranty if you wanted increased security.
Look for a plan that includes tenants’ liability cover, which will protect you for any accidental damage you or your guests cause in the property, such as breaking a mirror, spilling wine on the carpet, or damaging fixtures and fittings. Most landlords will expect you to pay for this yourself, but a good insurance policy should cover the cost.
Finally, remember to shop around for the best cover. That doesn’t always mean the cheapest, compare the small print carefully to make sure you are buying the cover you really need.
