Author Topic: Should I cancel/not renew my contents insurance?  (Read 408 times)

shelivesthedream

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Should I cancel/not renew my contents insurance?
« on: April 20, 2017, 01:49:39 AM »
We're moving house in June and I was looking at our contents insurance policy and I'm wondering if I should actually bother to have contents insurance at all.

The two of us live in a part-furnished one-bedroom rental flat and we're moving to an unfurnished two-bedroom rental house (because of my husband's work). We currently pay 91.16 a year for 50,000 worth of contents insurance with an excess of 50 (except in the case of water leak, when the excess is 350). I got it when we moved here because it seemed like the responsible thing to do.

The most expensive individual thing we own is probably the laptop I'm typing on. Obviously we own furniture (nothing fancy, all bought used), clothes, books (lots and lots...), crockery, etc etc. If the house burnt down or whatever there are some things we'd be sad to lose, but money can't buy you a new emotional attachment to an object. Also, I seriously doubt we'd replace literally everything we own like-for-like. We have around the total insurance value of 50k in our investment accounts right now.

Obviously 91.16/yr isn't a huge amount of money (though it no doubt will go up a bit in the new house), but every little helps and actually administering (renewing, claiming for stuff if we ever need to, making sure we don't void the terms, etc) the policy is a minor hassle I could do without. Would it be irresponsible/excessively risky to not have contents insurance?

jooniFLORisploo

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Re: Should I cancel/not renew my contents insurance?
« Reply #1 on: April 20, 2017, 02:01:56 AM »
Is contents literally the only thing the policy covers? Or does it also cover your liability should you cause a flood or fire in your suite or a neighbouring one? Does it cover month of transitional housing if your place gets damaged? Anything else?

If additional coverages like those (especially liability), I'd keep it. If not, I'd probably cancel. The annual cost of mine + deductible isn't worth contents coverage, but I feel the liability aspect is.

dess1313

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Re: Should I cancel/not renew my contents insurance?
« Reply #2 on: April 20, 2017, 02:08:35 AM »
There's a few things to think about.
contents replacement isnt always cheap,  if you need it now, you don't always have time to shop around or find it used.  sometimes you have to show receipts so cash purchases won't work to claim your insurance here.
its not only content insurance but also your expenses say if there was fire damage and you had to live elsewhere for 1 day or 5 weeks it may be covered under your policy.  this can also include meal allowances etc.
you could consider lowering your policy to cover only bare essentials, that would be enough to keep you going in the case of an emergency.

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terran

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Re: Should I cancel/not renew my contents insurance?
« Reply #3 on: April 20, 2017, 04:46:22 AM »
Renter's insurance (what we have in the US) also usually covers whatever liability you might have if someone is injured on the property. Does this insurance cover that?

Dicey

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Re: Should I cancel/not renew my contents insurance?
« Reply #4 on: April 20, 2017, 04:52:24 AM »
Since moving is a point of vulnerability, I'd definitely keep it until at least a couple months after the move.
I agree with dess, it gets tougher to replace things frugally if you need everything all at once. Or even a lot of things all at once.
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shelivesthedream

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Re: Should I cancel/not renew my contents insurance?
« Reply #5 on: April 20, 2017, 05:21:31 AM »
Thanks for the input - I think I need to get a full copy of my policy and read every word to see exactly what it does and does not cover. Renewal is in August anyway, so I have a little time to decide.

dess1313

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Re: Should I cancel/not renew my contents insurance?
« Reply #6 on: April 20, 2017, 05:48:14 AM »
make sure if you do renew that you shop around.  better deals can often be found.  if you're part of any large work forces, they often have certain companies that offer you employee discounts.  make sure you take advantage of that if its a good deal
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