With many Kiwis renting, and as the market grows, it makes sense for tenants to better understand the who, what and why of insurance. So, AA Insurance has put together a few tips to help renters protect themselves, and their property, while renting.
Whether you’ve rented for years or are moving out of home and into your first flat, it’s important that you take out contents insurance to cover you and your belongings. Contents insurance is there to give you peace of mind should something happen because lets face it, even if you’re really careful, unexpected events outside of our control can still happen.
You may not think you have enough ‘stuff’ to make it worth taking out insurance, but it all adds up quickly. Everything from your personal items such as clothing and jewellery, electronics like your mobile phone or laptop and any homewares such as the crockery, whiteware and furniture that you own is all covered by contents insurance. Try usng our handy calculator to help you work out how much ‘stuff’ you actually have.
Contents insurance does more than just protect your property. It can also protect you from potential financial ruin, by covering your legal liability for the accidental damage you may cause to other people’s property. For example or you accidently break something in a store, or your dog causes a car accident by running into the street.
With contents insurance, you’re covered – up to $2million of liability cover if you’re an AA Insurance customer – regardless of how much cover you have taken out to protect your belongings. If you’re not insured, then you’ll be required to pay for the damage out of your own pocket.
Legal liability might also include cover for any court ordered reparation in the unfortunate situation where you cause accidental injury to another person. An example might be if you injure a pedestrian by riding your bike through a red light and a court orders you to pay reparation due to the injury caused. If you’re an AA Insurance customer, your contents policy will include up to $250,000 worth of cover for incidents like this.
Contents insurance can also help should your rental home become uninhabitable after an event such as after a flood or a fire. If you’re insured with AA Insurance, we will cover the increase above the rent that you were previously paying while you are in temporary accommodation, this cover is for a maximum of four weeks. If needed, your insurance will cover the cost to move and/or temporarily store your things during this time too.
Lastly, it’s good to remember that your policy covers you and your family members. With this in mind, if you’re renting with others it’s important each flatmate takes out their own contents insurance. This will help everyone protect their individual property, as well as themselves from potential legal liability.