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
- 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.