Should You Get a Renters Insurance When Moving?

By August 27, 2021 Renters Insurance
Should You Get a Renters Insurance When Moving

Do I need renters’ insurance when moving in? That’s the question that most tenants seek answers to when thinking about relocating. Some may not even think about renters insurance, only until the last minute after packing their stuff.

Whether to get the insurance or not depends on whether the building you’re moving into requires you to have one.  While it’s not mandatory for every tenant, it’s highly advisable to acquire renters insurance. It’ll be a precious tool to help you navigate through tough financial challenges. Plus, the affluent tenants can use the insurance to mitigate the costs of unexpected events or damages on the property.

But the Landlord Hasn’t Requested a Renters Insurance?

Do you still need to get renters insurance when moving in even though your landlord hasn’t asked for it? Even though many building managers and landlords increasingly require tenants to have the policy, it’s not a must to have one.

But even if your landlord hasn’t demanded your renters’ insurance policy, we strongly advocate for anyone renting out a property to get it. The liabilities and losses coverages provided by the policy are valuable in reducing the impact of unexpected occurrences that can damage your belongings or attract legal liabilities.

What do The Renters’ Insurance Policy Covers?

Having the policy in place, even if not required, shields you against so many unexpected damages and liabilities. Some of the aspects covered in renters insurance policy include:

Personal Liability

Under personal liability cover, the policy protects you from legal liabilities resulting from an accident within your residence. You’re covered from the costs of lost wages or medical bills should a guest incur severe injuries at your place.

Personal Property Damage

This feature would cover the costs of damages to your personal property if damage results from an event covered in your policy. The compensation is as much as the limits of the cover taken.

Loss of Usage

Loss of Usage

If a covered event renders your residence uninhabitable, the policy will cater to the costs up to a level higher than your normal expenditures.

Getting renters insurance when moving can particularly be very beneficial to tenants without an affluent background. That’s not to say that the wealthier class does not need it; they too will benefit from the cover. However, someone without access to quick emergency funds enjoys the rescue from huge crippling liabilities that can be ongoing for a long time.

For instance, if your apartment becomes uninhabitable from a covered occurrence such as fire or smoke damage, you would spend a lot from your pocket if you hadn’t taken the cover. The loss of use cover would cater to your expenses like hotel room stay, special transport, food, among other costs until when you’re ready to return home.

What’s The Ideal Value of Renters Insurance Policy To Take?

In choosing the value of your renters’ insurance, you have to consider your liability and personal property coverage limits. To be safe, you should take a cover worth the value of your personal belongings and liability coverage of at least £100,000.

Following this approach will save you from tenants’ biggest financial risks. A combination of the two valuations should form the cost of your policy.

When Does the Policy Become Effective?

If you take renters insurance when moving, it becomes effective on your moving day. The policy covers your personal belongings and accident liabilities, unlike the homeowners’ insurance which covers the structural property.

Tenants are not liable for the structural building as that’s what homeowners insurance is for. Different tenants have a different approach to when to take the renters’ insurance. Some may prefer it when moving, while some will consider it after moving in.

Since renters insurance covers your personal belongings, it’s advisable to take it before moving out, regardless of where you reside. This way, your properties are insured even while on transit. However, not all policies will cover your belongings as you relocate.

When Does the Policy Become Effective

That’s why it’s imperative to contact your insurance provider and inquire if the policy covers belongings and accident liabilities while moving. If not, some companies have moving insurance to cater to the specific need for cover while moving.

A moving insurance policy often requires upfront payment, which is deductible whenever you need to move.

Does Your Home Removal Company Need Insurance?

The removal company also needs insurance because they handle clients’ properties, which are liable to damage while in transit. Before contracting the services of a removal firm, ask to check their insurance coverage. That gives you the peace of mind that your belongings are safe and covered while on transit.

Inquire about what the removal company’s insurance policy covers and determine if all your belongings are safe with them.

If you have renters insurance when moving, the insurance provider will cover property accidental damages only if using a professional removal firm. That’s another essential point to remember when you want to move. As such, hiring a lorry to handle your home removal by yourself may not be suitable for you, especially if you have renters insurance.

Before taking such a move, always check with your insurance provider to determine if the policy also covers damages resulting from self-removals.

Another vital thing to note is that insurance claims often come with a time limit. Therefore, read the terms of your policy to ensure you’re not penalised on the basis of late submissions when making claims. Remember to seek clarification on the meaning of excess on your policy.

Check the Removal Company’s Insurance Cover Limit

When entering into a contract with renters, removal firms often have an insurance cover as part of your agreement. However, the claims can be so low, ranging between £40 and £50. Again, discuss with them to know what is covered and what isn’t. Determine if they are willing to increase the value of their cover.

It’s advisable to get a valuation of your personal belongings, especially the valuable items. Doing this will let you know if you’ll need high-value renters insurance when moving.

Final Thoughts

While renters insurance isn’t a must, some landlords and building managers may require tenants to have one. Some may also dictate the value of the cover. Even if a landlord doesn’t need you to have a policy, purchasing it will caution your belongings against damages or losses.

Renters insurance offers more value by catering to the expenses incurred during unexpected emergencies should your residence be rendered inhabitable. Check with your provider to know what the policy covers and whether it becomes effective while moving or after.

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