Question of Finance: Do I still need to get insurance if I'm renting?
Q I AM currently renting but have some valuable items such as a television, stereo and some jewellery.
Should I get contents insurance? Would it cover me for accidental damage such as burst pipes etc?
Also, I read somewhere that I should have tenant's liability insurance. What is this and is it necessary?
A IT is advisable to insure contents that you own, including clothing and jewellery.
A good contents policy will provide cover for a highly comprehensive range of risks -- including fire, theft, explosion, storm or flooding.
It also covers the escape of water or oil from a fixed water or heating installation, deep freezer contents, unauthorised use of credit cards and lots more.
Some policies also provide cover in respect of accidental damage -- for example, if you knock over your stereo.
In relation to items like jewellery and cameras, you can opt to extend cover to include accidental loss or damage occurring outside the home.
The amount for which you should insure is the full replacement cost, as new, at today's prices. This is important because if you under-insure you will not get the full replacement value.
Tenant's liability insurance covers you in respect of damage to the building you are renting, decorations and fixtures, glass and sanitary ware etc.
These are the things you would be responsible for under the terms of your tenancy agreement. If you are inclined to lead a party lifestyle, this type of cover would be advisable.
Insurance policies and prices can vary -- greatly in some cases. To get the best policy to suit your individual circumstances, talk to an independent broker.
Edel Morey is spokesperson for the Professional Insurance Brokers' Association.