When renting a property, we tend to assume that home insurance for tenants is not necessary. That the owner will take care of all problems and unforeseen events in the household. However, the law states that it is the tenant who is liable to maintain the property in good condition and to return it in the same condition...
There are some circumstances in which the occupant of the property is liable and, therefore, would have to respond. In fact, there have already been cases in which the landlord requires the person interested in renting the property to take out insurance of this type.
Within our home insurance in Zaragoza and Spain, we also work these policies for tenants, These are increasingly in demand as they are very economical and offer peace of mind when occupying a property.
In this post we analyse its coverage so that you can judge whether or not it is suitable in your case.
What is renter's insurance?
A renter's insurance is a home insurance policy specially designed for the needs of the tenant, so it usually offers coverage that is outside the scope of the homeowner's home insurance. The main function is to protect the person residing in the home, so it includes liability coverage. As it is tailored for a non-owner, it usually includes aspects such as legal defence (e.g. in case of breach of contract). This is a common home insurance for a rented property.
Is it compulsory to take out insurance as a tenant?
The answer is that not compulsory, but recommended, especially where valuable assets, such as computer equipment, are involved.
Why renters' insurance?
When you rent a home, you are not always protected by your landlord's insurance. And these are some of the clearest cases:
- Negligence: for example, a fire caused by forgetting a frying pan on the stove or flooding the home by leaving the tap running. This type of personal oversight is not usually covered if the tenant does not have insurance and should therefore pay for repairs.
- Personal property: However much the homeowner may have 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 home insurance for tenants have to cover?
Before taking out insurance as a tenant, we must assess the different options carefully, as there is coverage for the building, contents and civil liability. And we do not have to take out all of them.
Continent
Continent refers to the whole of the structural part of the house: piping, electricity, walls and facades...
It is highly recommended that it is the homeowner himself who has this insurance, as well as including civil liability, i.e. possible damage caused by the home to others. For example, if a pipe bursts and floods the neighbour below. It is the owner's responsibility to arrange this.
As tenants, we cannot be obliged to take out insurance on this part, as it is the landlord who is responsible for this.
Content
The content refers to everything in the inside the building. That which, if you move into the next flat, 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, as it is what protects our computers, television, clothes, furniture, etc.
Civil Liability Insurance for tenants
This insurance will cover the damages that we may cause both in our own home and in that of our neighbours. It is one of the most recommended for not having to face financial responsibility of household claims.
The most common cases? A fire in the kitchen, leaving a tap running... these are the most common cases.
Most unknown renters' insurance coverages
Thanks to home insurance, even if we do not take it out for this specific reason, we are going to find very interesting guarantees that make us more protected than we thought:
- A robbery that we can suffer
- We may cause harm by walking down the street (e.g. break a TV we were watching in a shop, or something 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 Tenants' Insurance
At PIB Group Iberia we work with many insurance companies, which enables 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 should be aware of the coverage that is already provided by the owner in order to avoid duplication.
If you are thinking of insuring your rented property, do not hesitate to contact us. contact with 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 all the conditions and different prices of the tenant liability insurance.
