1. Home
2. Blogs

Living on rent? Protect your valuables with rental insurance

• 
• 
• 
• 0
• 0

Published on July 20, 2021. EST READ TIME: 3 minutes

Most people consider rental accommodation as a temporary arrangement till they buy an apartment or a house. Therefore, the idea of buying home insurance on rental property may sound unfamiliar. Some people also have the misconception that their owner’s house insurance will cover their valuable possessions as well. Well, it will not. Now you may not care so much about the structure of the house, but a natural or manmade disaster can damage all your valuables in the house beyond repair. Therefore, it’s high time to explore the many benefits of rental insurance. Let’s delve deeper.

What Is rental insurance?

Rental insurance is a type of property insurance that provides protection against the loss or damage of the contents of the house inhabited by a tenant. If there is any damage or theft of the belongings and valuables in the rented property, the homeowner’s insurance will not provide any solace to the tenant. This is because the house insurance, which is bought by the landlord, will cover only the structure of the house or any damage due to any structural problem.  And if the contents of the house belong to the landlord, the responsibility of protecting them also lies with the tenant as any damage or loss must be compensated by the tenant. Therefore, having a renter’s insuranceis as important as homeowner’s insurance.

What does it cover?

• Personal Possessions: If there’s any damage or loss to your personal valuables due to fire, theft, vandalism, or electrical breakdowns, the policy will cover the cost of repair or replacement of the items. The policy will also cover the loss of your personal property such as cash and jewellery while you are travelling.
• Legal Liabilities: This provides protection against third-party legal liabilities. If anyone other than the tenant or his/her family suffers any injury in your house even if the fault was not yours, renter’s insurance will take care of the medical expenses. Based on your plan, you will get compensated for legal, medical and other repair costs. The coverage also includes any structural repairs to your house and the owner’s belongings in the house. Any accidental damage to your neighbour’s property or possessions also come under the policy’s ambit.
• Special Items: Special assets such as expensive gadgets, electronic items, jewellery, art and artefacts are covered.
• Emergency Living Expenses: If you have to move to a temporary accommodation because your house has become unliveable and needs emergency repair, the policy will cover the additional living costs. This includes temporary rentals, hotel bills, food bills, etc.

What is not covered?

Any damage suffered due to the below reasons is not covered:

• Deliberate damage
• Damage due to war, rebellion, mutiny, etc.
• Precious items that are not covered under the policy unless specified
• Any consequential losses are not covered
• Items that have become very old and crossed their longevity

Things to remember while buying renter’s insurance

• Do a thorough research of the policies and compare them before buying one. This will help you get the plan that has good coverage and features at reasonable premiums.
• Make sure the policy covers all the contents, otherwise you will have to bear the cost of those that are not insured in case of damage.
• The sum insured should be enough to meet the replacement costs of the damaged or stolen contents.
• If the policy does not provide extensive coverage, opt for add-ons based on your requirement. Precious jewellery and other valuable items should be insured under add-ons to protect yourself against heavy losses.

Conclusion

Staying in a rented accommodation does not ensure complete protection to the contents of your house. If, due to an unfortunate event, your personal belongings get destroyed or stolen, you must bear the repair or replacement costs, which can ruin your savings. Therefore, protect the contents of the house with a comprehensive renter’s insurance as it will secure your personal possessions against any eventualities. Remember, a house insurancewill only protect the structure of the house but not its contents.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

---

• 
• 
• 
•