Home insurance can be divided into two distinct categories of insurance; buildings cover and contents cover. Buildings cover provides insurance for the structure of the actual building itself and will is the responsibility of the landlord, while contents cover insures the belongings stored inside the building and is the responsibility of the tenant.
Home insurance should be taken out to insure things such as furniture, electrical goods and jewellery from theft or natural damage. If your property is furnished by the landlord and something is damaged or stolen, your contents insurance could cover this.
There are broadly speaking two types of contents home insurance that tenants should consider:
- ‘New for Old’ polices will guarantee that if objects are damaged by an insured risk the insurance policy will pay the full price of replacement.
- Indemnity policies are on the whole cheaper, but the amount of cover offered is reduced to being based on the damaged or stolen items' current value (their age and use) instead of their value brand new.
A great number of insurers provide tenants' home insurance, so it is important to look at a number of quotes to find the best deal.