Tenant Insurance: Friend or Faux?

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As a tenant, it is your responsibility to obtain contents insurance that will adequately cover you for your possessions. Most landlords and letting agents will request proof that such insurance has been put in place prior to signing the tenancy agreement. If you are unsure as to where you might get contents insurance and are dealing with an agent, he will most likely be able to lead you in the right direction. If the agent is authorised by the Financial Services Authority (FSA) or is directly regulated by an FSA broker, then he would be eligible to sell you such insurance.

Since you don’t own the building you do not need building insurance, just contents only.

You might also look at getting Specialist Tenant’s Content Insurance which would protect your deposit should there be any damages to your landlord’s inventory. Accidents do happen to the best of us and who wouldn’t want to protect themselves in this unlikely event?

Contents Insurance generally covers the following:

Accidental damage: this would include damage to electronic equipment such as TV’s, stereos, DVD’s and even LCD and Plasma

New for Old Replacement: if items are damaged or stolen you would receive a new replacement for the old one that’s been damaged or stolen

Replacing Locks and/or keys: would cover the cost for new keys if lost, replacing locks, safes or alarm systems

Coverage for Cards and Cash: generally you’d be covered for £500 in cash and £500 for credit or debit cards

On top of this coverage you can make sure that the contents insurance not only covers your possessions but also covers your landlord’s contents. This would include light fixtures, furnishings if applicable, carpets or appliances. If an accident does occur, it would be nice to know that the repair of the landlord’s contents can be paid for instead of it coming out of your deposit at the end of the tenancy. Don’t forget, your landlord expects to get his property back in the same condition it was in when you rented it! Even if it’s just a stain on a carpet.

Don’t let a little accident cost you more by losing your deposit. Protect everything that belongs in your rental property and you will be able to sleep easy at night knowing you won’t have to worry about a thing.

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