Owning a home has become very costly in recent years. Older generations could easily afford a mortgage with just one salary, but this is no longer the case. Families are choosing to rent homes instead of buying, and even rent property out for additional income.

Tenants don’t always need to get insurance; however, it is highly advised so that they can cover any potential losses from theft, accidents, or natural disaster. Here are some effective ways that you can get the most out of tenant insurance.

Highest Value Items First

Every insurance company is different and will value your assets and property based on certain categories. This means that only a portion of your coverage will be allocated to jewellery, another portion to home appliances, and the rest to other valued items. What you need to look out for here is that your coverage is in line with your assets. If you have a room full of technical equipment that you use for remote work from home, you need to make sure that the replacement value for that equipment is the same or more.

It is equally important to consider how much your assets will be worth in 10 years, as this affects the coverage and premium substantially. High-quality brands will inflate with price, and your coverage needs to reflect this.

Buy a Simple Policy with Additional Coverage

You may find an insurance policy that promises to cover everything you can imagine. It sounds great, but the cost will shock you. Consider taking out a basic policy that covers theft and natural disasters, and add other policies that will offer more coverage for the most expensive items. Keep in mind that, with this option, you may need to have some of your items appraised to confirm their value.

Expensive gems and family heirlooms can be irreplaceable if stolen or damaged, but you can still get the replacement or cash value back when you make a claim.

Lower Premiums for Higher Security

It is quite common for insurance companies to lower your premium if you install additional security in your home. There are also things called deductibles that you are eligible for if you make small changes to your home. For instance, installing a deadbolt onto your front door increases your protection, so your insurance premium may drop.

Securing your outside windows with proximity sensors or activating smoke sensors gives the insurance company a sense of relief that you are less likely to be broken into or burn down the house. If they deem you to be a low-risk client, you have the benefit of paying much less.

If you are looking for insurance for tenants, have a look at Quotezone.co.uk which will ensure you get the best deal for your needs.

Bundle Tenant and Car Insurance

Buying an insurance policy can be a nightmare, but know that some policies can be bundled. If you have car insurance, you may be able to simply add renter’s insurance without paying a separate administration and banking fee. In many cases, you can save more than 20 per cent on your premium than if you had policies with separate insurers. This is also possible if you have pet insurance, as many companies offer a variety of assets that can be bundled together to save you money.

Long-Term Higher Excess

Deductibles are useful if you have improved your home security features, but your excess is what you will have to pay out in addition if you claim from the insurance company. Some people prefer to opt for a low excess so that, in the case of a claim, they will pay less. This means that the monthly premiums will be higher than normal.

This will require some quick calculations to see how much you would pay per year if you didn’t make any claims on your policy. If for example, you are paying £50 a month with an excess of £200, you can work out that you will be spending a minimum of £600 per year on tenant’s insurance. If you had to claim just once, that number would increase to £800. Try to go for a higher excess of even £300, and your premium could drop to £40 per month, meaning you only spend £480 a year.

Tenants’ insurance is very important if you have valuable items and want to protect your home from damage, but you need to understand the various policies out there. Even more important is to read the fine print as this is where you will find the best ways to save money on your premiums or even get more coverage without trying.