Just because your landlord has cover does not meant that you do too. In most cases, your landlord's insurance policy will only cover structual damage to the building itself. If your flat were to go up in flames, your landlord's policy would not reimburse you for your lost possessions.
Tenants' insurance protects your possessions in case of a loss from fire, smoke, lighting, vandalism, theft and other hazards. It also extends beyond theft or other hazards that occur in your unit - covering property that is either stolen or lost, from your car or damaged anywhere you happen to be.
There are two personal property cover options to choose from: new for old cover or indemnity (wear and tear) cover. Here is an example to illustrate the difference: The furniture you bought several years ago for £650 might only be worth £100 today, but it woul cost £900 to replace. With an indemnity policy, you would be reimbursed for the current depreciated value of the item. However, if you have new for old cover for your personal property, you would collect the full cost to replace the furniture. New for old cover ensures that you can replace yesterday's purchases at today's prices.
Calculating the value of your belongings can be difficult, but these two tips can help:
In addition to protecting your personal property, tenants' insurance also protects you in the event that you are responsible for injury or property damage to others. That means you will likely be protected if a guest to your flat slips and sprains his or her ankle.
Liability can also provide cover for your legal expenses whether an incident occurred within your rented residence or elsewhere.
Make sure to set aside some time each year to review your policy and ensure that your sum insured and cover are still applicable. Evaluate your needs based on the value of your belongings, the money you have in savings and the amount of risk you feel comfortable taking. Then, make sure to read the entire policy - especially the exclutions - to guarantee that you are covered in every situation thta is necessary for your lifestyle. If you have questions about your tenants' insurance policy, please contact Bond Lovis today.