renters insurance

What is renters insurance and why do I need it? You have just signed a new lease...


You have just signed a new lease and are preparing to move into your new pad however you cannot help but wonder whether or not you need contents insurance.  

Think about how you would cope if you damaged or lost your valuables due to a robbery, flood, fire etc. Things tend to happen when we least expect them to, so it’s best to guard yourself against your own stupidity or sheer bad luck.

More often than not, tenants assume their residential rental provider will cover their contents insurance, however this is not the case. The residential rental provider will cover home insurance, but unfortunately this policy does not cover the tenant’s personal possessions. The only way for a tenant to make a claim on their belongings is to have contents insurance.

Ultimately, the type of cover you choose will affect the premium you pay. The most inexpensive option, which entitles you to the bare minimum of cover, is a defined events policy, this will typically cover damage as a result of theft, fire, flood etc. For a broader range of coverage, policies that include accidental damage will protect you against unintended events e.g. spilling red wine on a carpet or dropping and breaking a fragile item such as a vase. Others give you limited cover if certain items are damaged outside of your home e.g. mobile phones, cameras or jewellery. 

There are two main types of contents insurance: 

  • Policies that cover the value of your belongings.
  • Policies that replace your belongings with new items e.g. 'new for old'. 

If nothing else, contents insurance can give you peace of mind. Not everyone with this kind of insurance will need to make a claim, but it is good to know it is there should you require it.

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