Insurance for renters - what you need and what you don't

Part of being a responsible adult is dropping the "it will never happen to me" mentality and taking responsibility for your life and your possessions. This means ensuring that your home and its contents will be taken care of if the unthinkable - such as a burglary, fire or flood - occurs. The good news for renters is that there is a certain type of insurance that you don't need to worry about. Jawitz Properties provides a breakdown of the insurance you need as a renter - and the insurance that you don't have to worry about.

Household contents insurance - the tenant's responsibility

There's good news and bad news when it comes to household contents insurance. The bad news is that it's a must-have in case something goes wrong - and it's your responsibility to pay for as a tenant. The good news is that it's often not nearly as expensive as you might think - especially if you're living in a flat or a complex. Household contents insurance is what covers your possessions in the event of a robbery, flood, fire or other disaster. In such an event, it will be up to your landlord to restore the structure of your home to a livable condition - but it's not up to your landlord to replace your lost or damaged possessions.

If your living room floods during heavy rain, for example, it will be up to your landlord to fix damaged floors, but it's up to you to replace your damaged lounge suite and television. In that case, you would put in a claim for the damaged items to your household contents insurance provider. Similarly, if your home is burgled, you would submit a claim for the stolen goods.

Buildings insurance - the landlord's responsibility

Buildings insurance covers the structure of the building and can also cover assets such as fixed generators and swimming pools. This is the homeowner's safeguard in case anything happens to the actual building itself. Your landlord's building insurance policy covers damage to the house itself. These damages could be caused by anything from fires and so-called "acts of god" to explosions and leaking pressurised pipes.

If you live in a property that's in a block of flats or part of a sectional title scheme, your home's buildings insurance is likely to be built into the cost of the monthly levy that your landlord pays. If you live in a freestanding house, on the other hand, your landlord will be responsible for paying for this.

Quick tips for getting the right insurance policies for you

• Shop around. There are numerous insurance companies selling household contents insurance and it's worth getting quotes from a few of them to make sure you're getting the right price.
• Always read the fine print of your policy and be aware of any exclusions or conditions that it may contain. An insurer might insist on a burglar alarm or electric fencing and if the property does not have these protective measures in place, your claim might be rejected.
• Before you take out a household contents insurance policy, be aware of what your contents are worth from a replacement point of view. If you take out a policy that covers R100 000 worth of goods and the replacement cost is R150 000, your claim will not be paid in full.
• An easy way to remember the difference between home contents insurance and building insurance is to think about ownership. The tenant owns the items in the home, so it is his or her responsibility to insure those items. A homeowner or landlord owns the building and is responsible for taking care of it.

Before you worry about insurance policies, it's important to find the right property to buy or rent. Jawitz Properties is here to help all would-be homeowners and tenants across South Africa find the home that's right for you. Contact us today.