When we rent a home, we expect that it is insured against possible risks. But suppose there is negligence on our part, or it is our personal property that is affected by robbery or fire, for example. In that case, the company with which the owner is insured will not have responsibility. The renter is not covered by the homeowner’s insurance used by the owner.
Therefore, the home insurance for renters is a home policy designed to protect the renter against any incident in the rented home.
Who Should Pay for Home Insurance in a Rental Home?
To understand the advantages of home insurance for renters, it is essential to know your rights and obligations first. Imagine that the fridge breaks down. By being part of the inventory, the owner is obliged to repair or replace it if necessary. However, if the renter is at fault for the broken fridge, the repair would be the renter’s responsibility.
In the case of robbery, if the owner has home insurance contracted for housing, this may cover the damage caused by forcing the door, but in no case will you be compensated if you have been robbed, for example, your personal computer. The owner’s home does not protect the contents that are not in the owner’s house.
There are other situations in which home insurance for renters could save you from a severe problem: in case of loss, if the responsibility is yours, the owner’s home insurance will not respond, and you will have to bear the costs for the damages caused unless you have your home insurance for renters to back you up.
On the other hand, even if conditions have been agreed and signed in the rental contract, the owner may not comply with them. For example, they are refusing to return the deposit. Home insurance for renters will support you in these situations, both to recover this money and know what legal steps to follow when claiming.
It is recommended that the owner has contracted home insurance that, at least, covers the contents of the property in the face of possible situations that may affect and seriously damage the home. It is also advisable that both the owner and the renter have civil liability insurance that protects them against possible damages that the house may cause to third parties, such as a flood.
What Does it Usually Cover?
Keep in mind that each company may or may not include specific coverage as standard or optional and also offer different types of rental insurance, depending on the level of protection you want for your home and your assets. In any case, there are a series of guarantees usual in most policies, which we will detail below, so you know in what situations you can protect home insurance for renters.
The most exciting coverage for you as a renter is protecting the content, that is your personal assets, in case of theft or fire. With this guarantee, the company covers the replacement costs of the goods and the material damages that the loss may have caused.
Some companies extend the guarantee of theft abroad. For example, suppose you are robbed on the street and robbed of jewelry, cash, or credit cards. In that case, the insurer offers compensation for the stolen property up to the limit agreed upon in the conditions of the policy.
With the guarantee of damages for water, you will be protected against one of the most common incidents. Imagine that a water leak causes damage to the house’s roof below. If you do not have home insurance for a renter, you would have to bear the repair costs.
In addition to water damage, electrical damage can be included. For example, if there is a voltage surge and an appliance breaks down.
Conclusion
If you are renting your home, whether the owner carries insurance or not, you should purchase renters insurance. Even if the owner has insurance, your personal property and assets may not be covered in some instances. Therefore, it is imperative that you purchase renter’s insurance when you are renting a home.
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