Top tenant insurance tips
Most residential tenancy arrangements are a threeway deal, with property managers and landlords making up two sides of the triangle and tenants completing the whole.
So, when things go wrong, tenants need to be prepared just like landlords and managers.
Having the right insurance is important to make sure everyone is covered for the worst.
Without the right cover, tenants could lose everything and may not be entitled to compensation in the event of damage or disaster.
But how do tenants wade through the choices available and find an affordable option?
Here are our top tips to pass onto tenants so they can choose the right insurance:
- Consider the value of your contents. Do you need complex cover or a lower-cost option? Make sure you’re not underinsured.
- How much can you afford to pay if things go wrong? Realistically consider what you can afford to pay if and when an incident occurs, then review the excess required on the policies. There’s no point having something like accidental breakage cover if you can’t afford the excess to make a claim.
- Level of security. Are there security doors on all home entrances, alarms or other security features? These factors could affect the cost of cover and security improvements may be worthwhile before you sign a lease or take out cover.
- Do you have items of value? These can affect the cost of cover and may need to be identified and listed individually on your policy. Don’t get caught short.
- Be honest. You need to make an honest full disclosure of your circumstances and the items you are insuring. Failure to do so will just make your policy invalid, so it’s never worth stretching the truth.
It hasn’t always been easy for tenants to get the cover they need at a reasonable cost but there are now customised options available, including EBM’s TenantCover designed for people living in rental accommodation at a low cost with simple security requirements.