When we rent a home we tend to take for granted that homeowners insurance is not necessary. That the landlord will take care of all problems and unforeseen events in the home. However, the law states that it is the tenant who is responsible for keeping the property in good condition and returning it in the same condition as it was in…
And there are some circumstances in which the occupant of the dwelling is responsible and, therefore, would have to respond. In fact, there have already been cases in which the owner requires the person interested in renting the property to have this type of insurance.
Within our home insurance in Zaragoza and Spain, we also work these policies for tenants, increasingly demanded as they are quite economical and offer peace of mind when occupying a home.
In this post we analyze its coverages so that you can judge whether it is convenient or not in your case.
What is renter’s insurance?
A renter’s insurance is a homeowner’s policy specially designed for the needs of the tenant, so it usually offers coverages that are outside the scope of the homeowner’s homeowner’s insurance. The main function is to protect the person residing in the dwelling, so it includes liability coverage. As it is tailored for a non-owner, it usually includes aspects such as legal defense (e.g., in case of breach of contract). It is a common home insurance in a rented dwelling.
Is it mandatory to take out insurance as a tenant?
The answer is that it is not mandatory, but it is advisable, especially when you have valuable assets, such as computer equipment.
Why renters insurance?
When we rent a home we will not always be protected by the homeowner’s insurance. And these are some of the clearest cases:
- Negligence: for example, a fire caused by forgetting to put a frying pan on the stove or flooding the home by leaving the tap running. This type of personal negligence is not usually covered if the tenant does not have insurance and should therefore pay for repairs.
- Personal property: even if the homeowner has insured the contents of the home, this will not be the case for your personal property. The most common problems are theft or fire.
What does homeowners insurance for renters have to cover?
Before taking out insurance as a tenant, we must evaluate the different options, since there is coverage for the building, contents and civil liability. And we do not have to take out all of them.
Continent
As continent refers to the whole structural part of the house: pipes, electricity, walls and facades…
It is highly recommended that it is the owner himself who has this insurance, as well as including civil liability, that is to say, possible damages that the house causes to others. For example: if a pipe breaks and floods the neighbor below. This is the owner’s responsibility to take care of.
As tenants, we cannot be obliged to take out insurance on this part, since it is the owner of the property who is responsible for it.
Content
The content refers to everything that is inside the property. That which, if you move into the next apartment, you could take with you. The insurance takes care of repairing or replacing it in case of theft, water damage, power surge, fire…
For the tenant, this is the most interesting section, since it is what protects our computers, television, clothes, furniture, etc.
Renters Liability Insurance
This insurance will cover the damages that we can cause both in our house and in that of the neighbors. It is one of the most advisable in order not to have to face the economic responsibility that home accidents entail.
The most common cases? A fire in the kitchen, leaving a faucet running… is the most common in this section.
Most unknown renters insurance coverages
Thanks to home insurance, even if we do not contract it for this specific reason, we will find very interesting guarantees that make us be more protected than we thought:
- A robbery that we can suffer
- That we may cause damage while walking down the street (for example, we may break a TV that we were watching in a store, or something that our child may do in that way).
- The handyman service: they can help us to place a piece of furniture, hang a picture, among other things.
Taking out Renters’ Insurance
On PIB Group Iberia we work with many insurance companies, which allows us to create a policy tailored to the needs of your rental property. It is highly advisable that before taking out an insurance policy you know the coverage already provided by the landlord to avoid duplication of coverage.
If you are thinking of insuring your rented property, do not hesitate to contact us so that we can advise you and find the most economical option and, at the same time, adjusted to your needs as a tenant. We will explain you all the conditions and different prices of the tenant liability insurance.
