Renter’s Insurance: What If…?

Buy A Property - independent.co.ukWhether you are planning on renting a flat, a house or any other type of property, you should ask yourself what you can do to protect your possessions, as many people tend to forget that their belongings could get damaged by fire, water, wind or some unpredictable accident and that, in such cases, nobody will give them a refund to repurchase what they have lost.

The insurance market is becoming increasingly competitive and it is crucial that you should make the most out of the present situation by requesting as many quotes as you can and compare them before choosing the one that best suits your specific needs and circumstances.

However, before you start looking for renter’s insurance offers, you should first contact your landlord and ask him or her what kind of insurance policy they use and what exactly it covers.

For instance, if you are planning on renting an unfurnished apartment, then tenant’s insurance is essential as you will have to buy your own furnishings and insure them against several risks such as water, fire, wind and other accidents.
And remember that, whether the property you are about to move into is completely or partly furnished, your landlord’s insurance will probably not cover the renter’s belongings too, which shouldn’t come as a surprise. After all, why would they want to insure your belongings as well?

Now, there are a few specific situations that we should analyze in detail.

Full-time students who wish to rent a property should find another way to insure their possessions against water, wind, fire, theft and other unpredictable happenings as it is highly likely that they won’t be able to afford a tenant’s insurance policy. However, if they are determined to purchase one, the insurer will ask them to evaluate their possessions’ value, so that he or she can estimate how much it would cost to re-purchase them, should they get damaged or stolen.

There’s still a case that we haven’t yet analyzed: what if you decided to share a house or apartment with someone you don’t know? In such situations, most insurers would be reluctant to cover your home contents, as living with someone you don’t know is always risky. However, there are many insurance companies, like Endsleigh (if you live in the UK), which offer this kind of cover.

So what will determine the cost of your insurance policy? Among the top factors are the location of your home, the insurance company you decide to buy the insurance policy from and, last but not least, how the place where you live or about to move into was constructed.
Another factor that could either reduce or increase the cost of your insurance policy is the value of your belongings. Needless to say that the more things you own, the more your insurance policy will cost as it will have to cover all of your belongings.

The basic types of renter’s insurance insure your home contents against the damage that fire, wind or water could cause. You can obviously expand your insurance policy and decide to protect your belongings from a vast array of elements, depending on where you live and the value of your possessions, however by doing so, the cost of your renter’s insurance policy could increase quite significantly.
So take your time and take the best decision as a good renter’s insurance will surely make the difference