As a renter, contents insurance might not be the first thing you think of when you sign for that flashy new pad. However, a recent YouGov poll commissioned by Paymentshield shows that 67% of renters don’t have contents insurance.
Even more alarming is that of the 33% that do, only a quarter are confident that they have sufficient cover.
Homeowners fare better in this regard, with 84% having contents insurance. Buy-to-let landlords aren’t completely off the hook and should consider having their buy-to-let insurance checked too.
Finding the best value contents insurance is well worth the trouble, so why does the average renter not bother?
3 reasons tenants don’t have contents insurance
According to Paymentshield, there are a number of reasons why renters don’t have contents insurance. Three that seem to be common, are:
- Tenants underestimate the value of their contents
- They deem contents insurance expensive
- Letting agencies are not talking to tenants adequately about their needs
5 steps to finding the best value
While it’s simple enough to get comparative quotes online, it’s important to know that you’ve found a good policy. Before signing up with a company, it’s worth looking up their customer service ratings, how the insurance firm compares to its peers in terms of payouts and what its underwriting practices are.
For value, however, you want to dig a little deeper. Here are five steps that’ll help you do just that.
Step 1: Compare quotes
While it’s prudent to look for the best possible deal, it’s also important to ensure that you get value for money. This means comparing quotes and ensuring that they provide sufficient cover and offer the insurance you need for your unique circumstances.
One of the fastest ways to determine whether the cover will suit your needs is to work your way through the exclusions.
Step 2: Choose cover according to your needs
Your cover needs to suit your needs. Not all insurers offer specific cover for renters, so it’s important to get the right type of cover. For instance, as a renter, you may face unique challenges that a homeowner might not, which changes your risk rating. This can affect the premium.
Step 3: Ensure you have sufficient contents insurance
When you are under-insured, you run the risk of losing out at claim stage. It will also mean that if you experience severe loss or damage, you may need to purchase items not listed on the policy yourself. Be sure to include items that belong to all members of the household.
Step 4: Pay special attention to high-value items
General contents insurance doesn’t always cover the full value of high-value items such as jewellery or electronics. If this is the case, it’s important to list these items separately and include serial numbers where possible.
Step 5: Scrutinise the policy document
Checking for errors or omissions in the policy document is the policy holder’s responsibility. Go through each line of the document to ensure that the coverage amounts are accurate and descriptions are correct.
It’s also important to check whether that all aspects of the cover you selected are reflected in the policy document, such as waivers and addendums.
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