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Do tenants need home insurance?
Home insurance is a vital form of protective cover for homeowners, as it provides valuable protection against the financial losses related to damage to the home, or damage, theft, or loss of belongings.

Without this form of cover the cost of repairs or replacement could go through the roof, so no homeowner can afford to be without the protection of this type of cover. But what about tenants that do not own their own home?

Well, if you are a tenant you do not usually need the same level of cover as a homeowner when it comes to home insurance. Home insurance cover is made up of buildings cover and contents cover. Buildings cover is designed to provide financial protection in the event that the actual building gets damaged through things such as malicious damage, fire, or weather. Contents cover on the other hand is designed to provide protection against the loss, damage, or theft of your belongings within the home, as well accidental damage where applicable.

If you are a tenant then the actually building is usually covered through the landlord's insurance, as the landlord is the one that effectively owns the home even though you live in it. Therefore most tenants will not need to take out buildings insurance cover. However, the contents cover is another matter.

The items within the home are your belongings and therefore you need to ensure that you have adequate contents cover to benefit from financial protection in the event of damage, theft, or loss. When it comes to fixtures and fittings you can often get cover that provides additional cover against accidental damage to the landlord's fixtures and fittings so that this won’t come out of your deposit when you leave the property.

The same goes if you are a student living in rented accommodation – in fact, getting home insurance to protect your belongings is even more important if you live in shared accommodation, as many students do, as there is an increased chance of theft or damage because of the number of people coming and going. Therefore as a renter you will still need to look for suitable contents insurance cover so that you have financial protection in the event that anything happens to your belongings.

When you are arranging your contents cover you should make sure that your belongings are adequately covered, as otherwise you could lose out financially in the future. This means letting the insurance company know the approximate value of goods in your home that you want insured, and any particularly expensive items such as electricals, PC, musical instruments, jewellery, etc. By failing to mention these you could get slightly cheaper cover but if you then end up damaging the items or you are the victim of theft you won't be able to claim, which means that your premiums will have been wasted.

You can buy contents cover separately from buildings cover, which is ideal for renters, but it is important to shop around to find the best cover for your needs at a price that suits your pocket. You can do this easily and quickly online, and you can enjoy making huge savings with some of the special incentives that some of these providers offer.

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Posted on: [ November 18, 2018 ]       Add to   Digg it   Add to Blinklist   Add to FUrl   StumbleUpon