- 30 Dec 2020
- Reading time
- 3 minutes
If you are currently renting your home, then you should definitely have renter’s insurance. It’s a no-brainer but one that is commonly overlooked by many renters.
The fact remains though, that if the worst were to happen, you could well be stuck with a considerable bill to replace your belongings.
But what should a good policy cover you for? Is it enough that your belongings are covered whilst you’re at home? What else is there on offer?
Let’s take a look.
The policy will usually specify a maximum payout for each item, along with a maximum total payout. You should compare different insurers to get the best deal for you.
If your home were to become uninhabitable for any reason, then your policy should cover your for temporary living expenses. Be aware that there will usually be a cap on this payout, and his should be one of the factors that help you decide on your policy.
In addition, any good policy should have some level of personal liability cover.
That’s the basics that any decent policy should give you cover for. But there are many instances when you would want your insurance cover to go further.
Optional Extra Coverage
Say you have a collection of jewellery, art or even vinyl records. Well, it would be a good idea to have these covered separately in your policy.
Good renter’s insurance should allow you to specify high value items such as these so that you have extra cover in the event of their loss or damage.
Water backup damage is another policy extra that good renter’s insurance should cover you for. In the unthinkable event that water backs up from the drains, then you’re covered for loss, damage and clean up. Phew.
Landlord property damage can also be a valuable added extra just in case you or your pet cause damage to the property that eventually will need to be fixed.
Property On The Move
Good renter’s insurance should also cover your property whilst it is in your car and parked at your rental unit. Be aware though, that this cover will not extend to your car itself, or property in your car whilst you’re on the go.
Other Benefits Of Good Policies
Good policies will also offer a variety of other benefits.
Financial fraud is a concern for all of us. Some policies will also cover for certain situations where your details were obtained from your property, so check your cover.
Food spoilage is another great extra that a good policy should have you covered for. In the event of a refrigerator or freezer failure, many good policies will cover replacement of the food that was spoiled as a result. Re-stocking your freezer can be an expensive task, so this is one to look into.
If your rental property has an associated storage unit separate to your main living area, then you may want to consider policies that cover items in here as well.
Lastly, you may want the peace of mind that you’re visitors’ property is safe whilst they are visiting you. Many good policies will cover for loss or damage to property belonging to a guest in certain circumstances.
What's Not Covered?
There are some things that even the best policies will not cover.
Usually, your property is not going to be covered whilst it’s out of your home.
There are also natural occurrences such as earthquakes that will be excluded from most policies.
A common misconception, especially in houses with multiple occupancy, is that you’re covered if someone else has an insurance policy. This is most certainly not the case, and each occupant of the house is going to have to have their own insurance policy.
It will come down to common sense and reading the policy document to make sure that you’re covered for the things you think you’re covered for.
So What’s Best?
A good rental insurance policy is the one that covers the basics, and the other things that you are concerned about.
No two policies are the same, and each company is going to make efforts to attract a certain sector of the market.
You should find a policy that has the basics done well. Then you can move onto the added extras and make sure that you have all of your bases covered in the policy you eventually decide on.