There are many benefits of buying a Tenants Insurance Plan to financially protect the tenant against loss or damage to a tenant’s own contents and personal items. It is important for both the landlord and the tenant to understand their own individual insurance liabilities and requirements so that the landlord and tenant do not duplicate insurances, otherwise the tenant may end up paying for an expensive insurance policy unnecessarily. There are separate insurance policies for landlords and tenants which are designed to cover all the individual liabilities and responsibilities of the two parties. It is up to the tenant or the tenant’s agent to check the landlord’s insurances to avoid duplication or under insurance.
A Tenants Insurance Plan is an ideal option if you are a tenant living in rental property. This type of insurance will protect the tenant financially in the event of any loss or damage to the tenant’s own contents and personal items caused by theft, accidents, vandalism, fire and flood. There are conditions attached to such policies which must be fully understood.
It is your landlord’s full responsibility to take out Building Insurance which covers any loss or damage to the structure of the building, any contents including fixed fittings and external structures. Accidental damage to the building or external structures by the tenant is covered under the Tenants Insurance Plan. Tenants Insurance not only provides the tenant financial protection against loss or damage to the tenant’s own possessions but also covers the cost of putting right the loss or accidental damage, by the tenant, to the landlord’s property. It is also the landlord’s responsibility to take out Landlord’s Liability Insurance to cover the tenant and other third parties for injury sustained in and around the landlord’s property.
|Company||Maximum Contents Cover||Contents Excess||Maximum Online Discount||Accidental Contents Damage|
|Direct Line||£50,000||From £200||40%||Yes|
There are ways to reduce the cost of an insurance premium. If the tenant is a student, discounted Student’s Contents Insurance is available. Another way to reduce the cost of an insurance premium is to agree an excess that is, a reduction of the amount paid out in the event of an insurance claim. In theory the larger the excess, the lower the premium. Having a Tenants Insurance Plan gives peace of mind in the event of loss or damage who ever is responsible, without such insurance could mean years of financial hardship, even ruin.
The tenant may consider, for cost reasons, that there is no need to take out a Tenants Insurance Plan because the tenant lives in a safe residential area. This is a misconception. Even if the rental property has security devices fitted which should give protection against burglary and if the area is regularly patrolled by neighborhood watch, there still remains the risk of fire, flood or natural disasters that can cause loss and damage to the tenant’s property. A Tenants Insurance Plan also provides cover against theft or injury to the tenant’s property which is kept within the curtilage of the property provided it is properly secured. The Tenants Insurance Plan will cover injury to third parties and accidental damage to third party property whilst on the tenant’s rented property.
The Tenants Insurance Plan covers the cost of replacement of the tenant’s personal items which are lost, damaged or stolen. It is a misconception, for cost reasons, that it is not worth insuring these items. Individually they may seem of little value but collectively they may represent a significant amount of money and can be quite costly to replace. It is wise, therefore, to include these items in the insurance policy. Nowadays, it is a landlord’s requirement that their tenants take out a Tenants Insurance Plan prior to entering into a Tenants Agreement.
To assist in making the right choice of insurance provider, the tenant should shop around and compare the cost of insurance before deciding which company to go with. There are comparison web sites to facilitate this process.
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