For anyone currently looking for coverage to protect their belongings, the terms renters insurance and contents insurance might sound familiar. Indeed, both will show up in an online search when looking for insurance for your personal items.
The terms are often used interchangeably and they are very similar. However, there is one important difference you should be aware of: while both offer insurance for your belongings, renters insurance is designed specifically for renters. That is, it covers the personal effects and furnishings of tenants in a rented property.
Inventory insurance can also be taken out by the owners. Thus, a homeowner can take out building insurance to protect the doors and windows of his house and contents insurance to protect the property inside his house.
Some differences with renters insurance
Overall, tenant insurance and inventory insurance offer the same guarantees. One of the only differences is that some renters insurance provides coverage for accidental damage to fixtures or fittings at the place you are renting. An example of this would be if you accidentally dent your living room door.
With tenants, insurers also sometimes offer a lower-cost version that only protects you against fire and theft. While this may be a more cost-effective option, it’s important to remember that this type of coverage is more basic. In other words, you want to make sure you won’t be underinsured.
Other than these nuances and a few others, renters and contents insurance are very similar in what they actually cover.
What does contents insurance cover?
As mentioned above, contents insurance and tenant insurance cover your personal belongings. This typically includes things like:
- White goods
- Electronic equipment, e.g. laptops, computers, televisions
The exact items covered vary from policy to policy, so be sure to double check what the inclusions and exclusions are before signing on the dotted line. If you have a particularly expensive item to insure, you may need to purchase additional cover.
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