What do you know about rent and home insurance? If you live for rent, the most common thing is that the address where you live has some type of insurance; It is normally the owner of the rented flat or house who takes out home insurance. However, the coverages may not be enough. For this reason, even if you live for rent, you are interested in having your home renters insurance.
Homeowner and renter insurance coverage
The home insurance contracted by the owner of the apartment covers the following areas:
- Civil liability arising from events for which the owner is civilly liable.
- The continent. That is the house itself.
- The content. This covers personal property owned by the homeowner and kept in the flat for the tenant’s enjoyment.
What does this mean? That, for example, in the event of a pipe breakage that floods a bedroom, the owner’s insurance would provide coverage. However, if the damage was caused by the tenant, this insurance would not cover damage caused to a third party.
Do you know everything that your home insurance covers when you live for rent?
What situations could occur if you live for rent? Let’s take two examples.
- You leave a tap open and the house floods or water reaches the apartment of the neighbor below.
- You leave the pan on the fire and the kitchen burns, the smoke spoiling the facade of the building.
In these cases, the owner’s home insurance would not cover the costs of the repair. You should be the one to take care of them. To solve all these situations, some companies already offer special insurance for renters of rental housing. These guarantee the restitution of the content of the insured tenant that is damaged or destroyed as a result of the accident. They also protect against claims for incidental damages caused to the owner or third parties.
All rental insurance coverage
These are the main coverages of home insurance, both for owners and renters:
- Material damage due to fire, explosion, or lightning.
- Material damage is caused by atmospheric phenomena such as torrential rains, wind, floods, or heavy snowfall.
- Material damage is caused by water leaks, breakages, or blockages and leaks that originate in adjoining or superior homes. They also cover floods caused by not having turned off water faucets or faucets.
- Electrical damage as a result of sudden voltage changes and short circuits.
Specific coverage for owners
If you are an owner and bet on rental insurance, these are some of the main coverages offered by insurers:
- Legal advice to proceed with the eviction. This usually occurs when the tenant does not assume the payments or when, for example, works are started without the owner’s consent. Coverage is subject to the economic limits set by the insurer.
- Damage caused by the tenant. This coverage also has an economic limit, which varies according to the policy.
- Property cleaning service when the rental contract ends.
- Compensation for non-payment of the monthly rental fee once the eviction process has begun.
Non-payment of rent insurance
Owners also have the possibility of taking out rent non-payment insurance. Thanks to it, they will be protected against possible episodes of delinquency by the tenants. This type of insurance covers the monthly rent, with a limit that is established by the insurer itself in each case. The amount will depend on the cost of the policy according to which is reached in each case.
This type of home insurance provides the following advantages:
- Judicial claim to the tenant so that he pays the money he owes.
- Legal advice to the owner to evict the tenant.
- Coverage of the payment of the monthly rental payments owed by the tenant, with the limit established in the policy.
Specific coverage for renters
If you are a tenant, these are the coverages that you can enjoy if you take out home rental insurance.
- Civil Liability. If an incident occurs caused by you as a tenant, and this causes negative consequences to third parties, you will have coverage. The cost of compensation for damages will be borne by the insurance. Sometimes, even, the insurance will cover you if the damages have been caused by your relatives.
- Robbery. If something is stolen from you inside the rented home, you will have guaranteed coverage. This sometimes includes thefts in nearby areas such as storage rooms, garages, or gardens. It also usually includes material damage.
- Assistance at home. If, for example, you leave your keys inside the house, the cost of the locksmith service would be covered.
In short, if you are one of those who are looking for secure rentals as an owner or as a tenant, you should take out housing rental insurance. It will give you the peace of mind you need.