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Some of you, heck probably most of you, will think that house insurance won’t apply to you. You’re renting, or in a dorm of some description. No need for such things, right? Wrong. The items you own within those walls are not covered by the owner’s insurance should they be destroyed or damaged.
True story, my sister and her then partner lived in a house that burnt down. They were very lucky no one was home to be injured as it engulfed the property pretty quickly. They had a lot of items in that house that it had taken them (and my parents, let’s face it) years to accumulate. That night they were gone. They had to pretty much start from scratch.
Contents insurance would have replaced some, if not all, of those items had they been adequately insured. And to make sure you are on the right track to insuring the contents of your rental, here are some tips from the experts.
The excess amount is the amount of money you have to pay (usually upfront) when you make a claim on your insurance. Some start at a few hundred dollars and go up to thousands. Consider your excess carefully as you can lower the premium by having a higher excess but may leave you out-of-pocket if you want to claim.
Consider the sum insured carefully. Many first timers think that most of the items are second-hand (got for cheap) they aren’t worth much however if you are paid out for a total loss the insurance company replaces with new.
My hot tip would be to choose an amount that you know you could put together for you to use in 2-4 weeks and set it around that amount or a little lower.
Cover everything. All the things. Not just furniture but clothes, cutlery, pots, pans and the ironing board. Factor in the coast of all those things. I just walk through my house with the calculator on my phone adding together what I paid for the big things and taking a stab at the amounts collectively of the small things.
Keep in mind that the amount of cover you request will increase your policy a little. But once you have a general idea of how much it would cost you to start again, you can talk to a consultant. Work with then until you find a good balance between what you can afford to pay and what amount is covered.
If you were considering adding items to your contents insurance list that do not exist, I have a few words to share on that. Strong words. Words from the wise.
Insurance companies often consider things like carpet and curtains and light fittings as contents, for the purposes of contents insurance, not as fixed parts of the home. Imagine what it would cost you to replace a house worth of carpet, curtains and blinds… Short version, lots!
So keep this in mind when working out your amount. However it’s worth mentioning that a good landlord will have these items covered in their insurance policy so weigh up the pros and cons with adding a large additional amount to your cover.
Please note this insurance advice is of a general nature. Whenever you purchase insurance you should consider how it works for you, your budget and your personal needs. Ask someone you trust for their advice if you have concerns.
Melissa is the Leave Home Blog Boss. She is living the high life in her hometown, didn’t finish her marketing degree & drinks too much on a Thursday night. Blogging since 2009, Melissa decided to put everything she knows into making The Leave Home Blog a light & easy how-to guide for being a grown up.