Contents Insurance for Tenants – Protecting your Home
It is highly recommended that your employees take out a Contents Insurance Policy when they move into their new property. This type of insurance will protect their personal possessions.
What is contents insurance for tenants and why have it?
Tenant’s contents insurance is a cover designed to protect personal possessions from flood, fire damage and theft. Landlords do not take out insurance cover for their tenant’s possessions, they only insure the building itself and its fixtures and fittings, such as lights, kitchen units etc.
Other types of cover
In addition to contents insurance cover, it is recommended to also have additional cover for accidental damage, this is also known as tenant’s liability cover. If the tenant damages any of the fixtures and fittings at the property, even by accident, they will be liable to either pay for the damage, the repairs or the replacement of the item.
Insuring personal possessions away from the home is also recommended. This type of cover is particularly useful for high value items that are taken outside of the home. These can be items such as smartphones, tablets, jewellery and bicycles.
How much does it cost?
Contents cover can be purchased for as little as £10 per month depending on the value of the possessions to be insured and the chosen provider. Adding accidental damage cover and away from home cover will increase the premium paid.
Policies come with a compulsory excess which has to be paid in the event of a claim. You can also choose to pay a voluntary excess on top of the compulsory excess which will bring the cost of the premium down. The more excess paid, the lower the premium will be.
Make sure the value of the possessions is calculated correctly, under insuring possessions could lead to getting less than the value of the possessions when a claim is made. Add up everything; even include smaller items such as clothes. There are several price comparison sites that have a contents value calculator to help with this so be sure to give it a try.
Where and how to buy contents insurance?
It is worth shopping around as insurance premiums and excesses can vary. Price comparison sites are a good way of scouring the market as they compare various providers and products based on their price and features. Some of the most popular price comparison sites that can provide quotations are comparethemarket.com, confused.com, gocompare.com and moneysupermarket.com.
Alternatively some banks offer insurance packages with their accounts. The terms and conditions vary though and there is usually a charge so it is worth investigating what exactly you are covered for and how much it costs. It may well be that the package they are offering is not entirely applicable to your needs, in which case you end up paying for services that are not needed.
Renewing contents insurance
Upon receipt of the insurance renewal it is worth shopping around to compare premiums. It’s more than likely that a cheaper premium will be available with an alternative provider. Majority of the time insurance renewals are subject to an increased premium.