Steven Higham, money advice officer at Warrington Housing Association, was shocked to hear how many tenants do not have content insurance to cover their treasured possession. Here he talks about how to get the best deal.
“It’s surprising how many of our residents don’t have cover. Do you have home contents insurance? If you don’t, you are not alone.
Last year, the Association of British Insurers reported one in four UK households were uninsured.
Some people are on a very limited budget but others are just willing to take the risk that nothing bad will happen to them.
Those without coverage have to ask themselves if everything in their house was destroyed, say in a fire, would they be able to afford to replace all their possessions? And, for virtually everyone, the answer is no.
The good news is the cost of home contents insurance has fallen to a record low.
Tenants do not need buildings insurance – that is the responsibility of their landlord or housing association.
And there is no need for any special tenants’ contents insurance either – just a straightforward policy that covers what you need. You may be shocked the amount you need to be covered for once you tot up the value of all your possessions.
Remember to keep your policy up to date with newly bought items of value. If you are underinsured your insurer may only pay a proportion of your claim.
Use price comparison sites online to find some of the best deals but be aware some insurers don’t appear on these sites and you may get a better deal going direct to the company even if they do.
It pays, or in reality saves, to do your research.
The lowest priced premium is not necessarily the best deal. Things to look out for when comparing policies include:
• what each policy covers. Most are ‘new for old’ but some policies offer ‘indemnity cover’, meaning you will only get the value of your belongings in their used state.
• the premium plus any excess that you will have to pay if you make a claim
• the no claims bonus
• additional conditions or exclusions
If you have had financial difficulties in the past or special circumstances which are making it difficult to get reasonable quotes, try an insurance broker.”
If you want any further advice get in touch with Steven at stevenh@wha.org.uk
