We have all lost valuables through theft or damage. Depending on their cost, it can be hard to replace them. Some are simply never replaced, because it took years of savings to purchase them. But what about the property owner’s insurance? Is it worth getting your own cover? Here are some answers given to tenants by a Property Management Company in Hobart, Tasmania.
Although the building you are living in is covered by your landlord’s insurance against fire, floods or damage, that insurance doesn’t cover the contents of your home. In other words, if there is a fire, you can’t claim your television, sound system, furniture and household contents from owners or their insurers. Some landlords might even request that tenants take out household content insurance.
What does your landlord cover?
If a pipe bursts, it’s not your problem. If there’s damp in the walls, that’s your landlord’s headache. In other words, the structure of the building is your landlord’s responsibility. But if anything you own is damaged in the process, that is very much your problem.
If you live in a furnished place, your landlord will be covered for the content in the premises when you move in. Anything of yours that you add to the furnishings, and other personal belongings you take there with you, will not be included in what the owner’s insurance covers.
Why go for household content cover?
We all can’t imagine life without our laptops, computers, smart phones, fridges, televisions and sound systems. These items are costly, and will be replaced by your insurance should they get damaged, or stolen. Generally, content cover will give you the security of knowing the following items will be replaced:
- Personal clothing
- Electrical appliances and gadgets
- Furniture plus, curtains, linen, etc.
- Antiques and precious heirlooms
- DVD’s, CD’s and books
- Cutlery and crockery
This list makes one realize the disastrous consequences of losing everything. You could never replace the memories attached to some of these items. And it would also be extremely difficult to afford new ones. You should carefully consider whether or not you want to take the risk of renting without additional insurance cover.
Perhaps you believe that it will never happen to you? That it only happens to other people, or that insurance is for negative people who live in fear? If you do, take your chances. But no matter where you live there is the risk of theft, floods, or fire, and even if that risk is very small, it might be better to be safe rather than sorry.
Is it expensive to get content cover?
Insurance companies offer a wide selection of policies tailored to the needs of a diverse population. If you look into it, and shop around, you could find a policy that is both affordable, and suits your needs.
Here are a few tips for cutting your monthly premiums:
- Pay annually to save on levies and monthly administration fees
- Insure high-value items separately as extras
- Prevent theft by using high quality locks and alarm systems. This should also reduce premiums – but remember to discuss this with your property management company first.
- Try to get a no claims discount
Choosing your insurance
Make sure you get the right amount of cover and that you understand the policy (including the small print). The last thing you want to do is to pay insurance premiums for years, and when you need it, find out something was not covered. The ‘sum insured’ is the maximum cover you will have. Make sure you update your insurance from time to time as the replacement value of household items keeps going up. You may also have acquired some new valuables in the interim.
So, if you had to ask your Property Management Company in Hobart if content insurance is a good idea, we would suggest that you get additional cover. You can contact Baxton any time for advice on renting or if you are looking for the right place to call home.
Written and syndicated by
– Baxton Media.
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