Home insurance is not limited to homeowners; renters can also protect their belongings with insurance. Contents insurance offers more in the way of protection against theft and damage caused by fires and flooding, and it comes complete with other perks as well. Renter's insurance policies are commonly referred to as contents insurance or even simply contents, and terms such as renter's insurance and contents insurance are generally interchangeable. Some renter's insurance policies tend to limit the sum insured to a low level, but this is rarely the case with any of the policies in our home insurance comparison.
Buying the Right Contents Insurance for Renters: A Guide
The contents of a rented home include all of the belongings you own in the house, car, or elsewhere. Technically, contents are differentiated from furniture, which are also belongings but which are in your rented house, whereas contents are in your house. What counts as contents and what doesn't?
Personal possessions are like the stuff of your everyday life. They include such items as clothing, jewellery and other accessories, phones, computers, DVDs, and furniture. Financial documents, such as your passport and wallet, also fall under the category of contents.
What does this type of insurance cover?
This type of insurance covers theft of your contents, fire and smoke damage (or, if a fire were to fake), and water damage (such as burst pipes or a flood).
Theft is covered, providing the thief does not break and enter the home to steal the contents, and is limited to the value of the contents within the home. An extra benefit of this coverage is that it covers your personal belongings when you are away from home.
Fire damage caused by an accidental fire is covered. You might have a burglary-type or theft-type claim if it's a situation where you had no idea the fire started accidentally.
Other types of damage, such as water damage due to burst water pipes, or a flood, are also covered.
The Advantage of Renter's Insurance
Renter's insurance offers an advantage over the contents coverage that is normally included in a home insurance policy. You see, renter's insurance will provide for the replacement of your belongings in the event that something happens to them, but a home insurance policy only offers compensation for the loss of possessions, not for the replacement of them.
Renter's insurance is generally cheaper than a home insurance policy because it is limited in its coverage and only covers the specific possessions in your rented home or apartment.
Conclusion
In conclusion, renters insurance is set up in such a way as to offer coverage for your possessions but still keep the costs down. It is definitely something that you should consider purchasing. In fact, if you are a renter, you really do not have any choice. The landlord requires it, and you cannot even move in without it. It may not be cheap, but it is better to be safe than sorry. Working with the right insurance company will help ensure that you have everything you need.
Should you be in need of home and contents insurance, contact New Wave Insurance. We help you find the right insurance for your assets, business and vehicles.