There is this ongoing question or lack of knowledge as to whether or not, when someone moves into a rented property, they should or should not take out homeowner’s insurance. Most people think that the landlord’s insurance is enough. In this post we will shed light on this issue.
Homeowner’s insurance
Indeed, the owner should have insurance. It provides coverage to:
- Damage that may occur to the dwelling itself,
- As well as the civil liability of the owner for issues originated by the property itself: see a pipe breakage or leakage from a drain, a fire generated by a short circuit in the electrical wiring of the home.
However, the tenant’s liability is still exposed, as he is not the“insured” on the apartment owner’s policy.
What issues are not covered by homeowner’s insurance?
These are the reasons why every farsighted tenant should take out home insurance to cover the following:
Securing the tenant’s contents
The contents owned by the tenant and kept in the property (furniture, TV, computers, cell phones, clothes, money…) must be covered by the tenant’s insurance.
The owner’s homeowner’s insurance covers the owner’s own contents, but not those of third parties, unless it can be specified in the policy, which is very rare.
Example: there is a fire in the house and the computer in the living room and the television that belonged to the tenants are burned.
Theft or robbery in the street
Unfortunately, we suffer a robbery while traveling, and since we do not have insurance, we cannot be covered for this contingency. Or a purse or backpack being pulled on the way to work. Our homeowner’s insurance covers the robbery.
Cash, laptop, cell phone, etc., are items that could have been paid for by the company if they had insurance, since street theft, although many people are unaware of it, is covered by good insurance companies.
Liability as a tenant
But, mainly, the civil liability attributable to the tenant, which is not covered by the landlord, is very important.
An example could be a fire that starts while cooking and affects the upstairs or the adjoining apartment (this liability is not covered by the homeowner’s insurance, since this fire is not the owner’s fault); another case would be what is known as “failure to close the faucets”: you go on a trip and, without realizing it, you leave a faucet open, causing a flood in your home that causes leaks on the floor below (the same happens as before, this loss is not caused by the homeowner).
Even small issues that arise in everyday life such as a problem with a curtain or applying silicone in the bathroom for maintenance, are issues in which our insurance could act through what is known as “handyman service”. “handyman service”.This is a way of not having to talk to the “landlord”, and we avoid that unnecessary contact if the landlord is not to our liking.
Sincerely, we consider that these are questions to be seriously valued, even more when they can be insurances from 100 € per year. If you want to receive this type of advice on your insurance, or simply ask us for a quote, please contact us.
