There are two main choices to make when choosing what kind of contents insurance policy to take out. Making these decisions before approaching companies for contents insurance quotes will save you a lot of time.
‘New for old’ or indemnity?
An indemnity policy will cost less in premiums but will provide you with less money for item replacement. This is because the factors of age, wear and tear and depreciation will all be factored into the decision about the amount a claim is worth. This means it is possible you could come out underfunded if you make a large claim.
An indemnity policy will cost less in premiums but will provide you with less money for item replacement. This is because the factors of age, wear and tear and depreciation will all be factored into the decision about the amount a claim is worth. This means it is possible you could come out underfunded if you make a large claim.
While costing more, a ‘new for old’ contents insurance for the rental property will provide you with however much money is needed for a full item repair or replacement. This kind of policy makes sure that any broken or lost items are replaced with new versions.
Sum insured or bedroom rated?
The next choice is about how you would like the amount of cover you are given to be calculated. A bedroom rated policy calculates the cover needed on the basis of the amount of bedrooms in the rental property, while a sum insured policy will place the onus on you to evaluate how much cover you need.
It can be difficult to judge which of these options is better when looking for contents insurance for a rental property, so it is important to compare deals before deciding.