You don’t need to own a home to benefit from having insurance. In fact, you may be in a very vulnerable position if you’re not covered!
If you’re a tenant that is under the impression that having insurance is the sole responsibility of their landlord, you may be surprised to learn that a landlord will only have insurance to cover damage to the building – and not necessarily to cover damage to your belongings.
The damage wasn’t my fault though!
Renters that don’t have insurance may find themselves in financial hardship if anything were to go wrong at the property, whether it is a fire, flood or other catastrophic event. Whilst you may be able to seek compensation for goods damaged at the fault of a property defect, some cases can be difficult to prove.
These kinds of events are usually unexpected and it can be a real struggle to replace everything you own if you don’t have insurance to cover the financial outlay.
But I don’t own enough to warrant insurance.
Your valuables may be worth more than you think to replace. If you own a bit of furniture, a few white-goods and electronics, along with a decent wardrobe, then you will probably find that the cost to replace all of this comes to thousands of dollars. Smart phones and electronics alone are worth upwards of a thousand dollars each.
Some types of insurance cover may also cover you for extra things you might need such as temporary accommodation, pet protection or legal liability of someone who injures themselves while at your property.
What cover should I get?
Everybody’s insurance needs are different. Shop around to find a cover that protects you and your specific needs. Use insurance comparison sites to compare what is out there and make sure you understand what each policy does and doesn’t cover and what excess is payable for types of claims.
If you do have contents insurance, when was the last time you reviewed your policy? Regular updates to your policy ensure your recent purchases don’t leave you out-of-pocket should you need to make a claim unexpectedly.