As a tenant, do I need insurance?
If natural disasters of recent years have taught us anything, it’s the value of insurance. But what about if you rent a property and don’t own it? What type of insurance do you need and what’s covered by the landlord?
Here, we take a quick look at the importance of insurance, and whose policy covers what in the event of accident or disaster.
If you rent the home where you reside, the landlord is responsible for insuring the building against damage and disaster. That means their insurance should cover the costs of rebuilding or repairing a property should something beyond their control go seriously wrong.
This insurance, however, only covers the structure – it doesn’t extend to the contents inside it. And that’s where your personal contents insurance as a renter comes into play.
Contents insurance covers damage, theft or destruction of miscellaneous personal items that are contained within a house.
In a rental situation, contents insurance is the tenant’s responsibility as it covers your personal items. This coverage generally extends to break-ins, fires, flooding and other incidents which would result in you losing or incurring damage to your possessions due to an incident beyond your control.
Some policies also extend to visitor’s possessions, so should you have someone stay with you and something happens, their items could potentially be covered as well.
And yes, contents insurance is a type of insurance that every renter should have to cover themselves against the unexpected.
How do I get it?
In order to obtain contents insurance, you usually estimate or list the value of the items you have and take out a suitable policy that would cover their value or full replacement.
If you have specific valuable items, it’s a good idea to note them individually and cover them as part of your policy.
Meanwhile, the price of contents insurance can vary depending on the type of residence you live in, where it’s situated, and how well it’s secured.
Ground floor units, for example, may cost a little more than upper floors when it comes to contents insurance because the property has a slightly higher risk of break-ins due to its position.
What’s the takeaway?
A landlord’s insurance does not cover your possessions, and that’s a mistake many renters often inadvertently make.
As a tenant you require contents insurance. This protects your possessions against damage and loss.
Meanwhile, read any insurance policy carefully as it discloses all items that will be covered and the situations when coverage may not apply.
At Eview Group our experienced property managers pride themselves on establishing great relationships with both tenants and landlords. We appreciate as a renter, the property you reside in is the place you call home.
You can learn more about our current rental opportunities available here