Importance of tenants contents insurance

An overview of tenant contents insurance

One minute, everything is in order. The next minute, your personal belongings are destroyed. This is a clear indication you have to pay some amount to fix the damage. However, if you are a tenant residing in a rented house, tenants contents insurance option comes into pay. It’s a form of contents insurance that’s designed to secure your belongings from fire or natural calamities.

Importance of tenants contents insurance

Tenants contents insurance is not mandatory. However, it’s a good practice to buy one just in case of an emergency. Some of the benefits include:

  • It secures the tenants’ personal belongings in case of an unforeseeable event such a fire or natural calamities.
  • Offers legal cover: This applies in case a dispute arises between the landlord and tenant. It helps figure out to who should the responsibility fall upon.
  • Replacement: Most policies tend to replace your old damaged items with new ones.
  • Relocation: Most policies do cover the costs of relocation of the tenant. This is applicable to the time period it will take for the damage to be fixed.
  • Tenant’s liability coverage: In such a case, most insurance policies protect the tenant’s deposits.
  • Accidental damages to the tenants’ electronics are also covered.

Things to consider before purchasing tenants contents insurance

They include:

  • The type of cover you need: Under home insurance, there is house and contents insurance.

The house insurance is usually covered by the landlord while the tenants should purchase the tenants’ contents insurance.

  • A clear understanding of what each insurance policy covers in case of damage.
  • The value of your belongings: It is very critical to accurately calculate the value of your items. This is because in not doing so, you risk being underinsured.
  • Replacement options: Always strive to get the ‘new for old’ items option.

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