Having secured a place to live, found the deposit and worked out how you are going to cover the rent, probably the last thing on your mind right now is spending even more money. However, you really should give proper consideration to the issue of insurance, not only for your own belongings, but also in case you cause damage to any of the furniture or fittings in your rented accommodation. By taking appropriate measures from the outset and by paying a relatively small premium, you will be covered if anything goes wrong. Without tenants insurance, if you are burgled or if there is a fire or any other disaster, quite simply you stand to lose everything.
Your landlord will have insurance to cover the actual property, the bricks and mortar, but that won't cover your possessions. Consider how much you would have to spend if you had to replace everything you own. That would include your clothes, any furniture you have brought into the accommodation, your books, audio equipment, television, DVD player, computer, kitchen appliances and valuables such as jewellery. If you add up the individual items, the total cost can be alarming.
Many standard household contents policies have a minimum basic level of cover and often that is much higher than would be required for those living in rented accommodation, especially if the accommodation is already furnished. Tenants insurance allows you to agree a level of cover with the insurance company that is appropriate for your individual needs. If your property is destroyed, stolen or damaged, your insurance cover will pay for its replacement. There are also options for tenants insurance to cover your possessions when they are temporarily away from the accommodation, for example if you are travelling.
Additionally tenants insurance will offer you cover, up to a certain level, for any damage which you may cause to any of the landlord's property that is provided in your accommodation, such as furniture, carpets and other fixtures and fittings. The personal liability aspect of your insurance will also cover you for damage you may cause to adjoining accommodation. The precise level of cover will need to be agreed with the insurance company.
Have you considered whether you are covered if someone has an accident within your rented property? You may be held liable and tenants insurance protects you against any claim which an injured person may bring against you.
Also, if you are forced to vacate your rented accommodation because it is uninhabitable following an accident for which you are insured, you may incur extra costs and your tenants insurance can include an option to cover this.
Your tenants insurance policy may have an upper limit which will be paid out in the case of loss or damage to any individual item. If you own anything that is more valuable you may wish to consider taking out additional insurance. Items that could be affected include valuable jewellery, computers and bicycles.
It is a good idea to make a comprehensive list of your belongings, including photographs of your personal possessions. This will be useful in the event that you need to make a claim against your policy.