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Why Home Insurance for Tenants Should be of Utmost Priority

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We all think that being a tenant is a temporary arrangement—a mere pit stop till we are in a position to buy our own dream house. Thus we never think of getting a home insurance on rental properties. But do you realize that an unfortunate event like fire, vandalism, or theft can end all dreams of buying a new house as all your savings will be gone in buying and repairing lost and broken items? As a tenant you must know that your landlord’s home insurance will not borne expenses for any damage caused to your personal belongings—from furniture to electrical appliances. Apart from this, you will also have to pay if you cause damage to the owner’s property accidently. For example, if you’re cooking and a fire accidently breaks out that spreads to other parts of the building, you would have to incur the costs of repair even for the other apartments. Well, there is an easy way out of these tensions—buy a home insurance for tenants.

What is Renter’s Insurance?

Renters insurance is a form of property insurance that covers losses to personal property and protects the insured from liability claims. It also covers the personal liability of the tenant in case a non-family member gets injured while at your apartment.

Home insurance for Tenants Covers Two Essential Areas:

1. Liability coverage:

It protects tenants if they or a guest damages the building or if someone is injured within their rental unit. The insurer bears the financial expenses for these damages.

2. Content coverage:

It deals with replacing or repairing lost or damaged possessions.

Why Do You Need Home Insurance as a Tenant?

The owners of your house might have a homeowners insurance plan. But this insurance will cover only the structure of the house. Your landlord's insurance will not cover the contents of the house that belong to you. Secondly, if you accidentally damage the house you live in as a renter, you might have to bear the repair expenses. Again, your landlord's insurance will not cover these expenses, and you might have to pay for its repair/replacement from your pocket if you do not have home insurance for tenants.

What Should You Look for When Considering Tenant Insurance?

While buying home insurance for tenants, ask your insurer to provide a thorough explanation of the policy cover. A few features that you may wish to enquire about are replacement cost, liability coverage, additional living expenses, theft and discount deductibles.

Why Home Insurance on Rental Properties is Important

• The monthly instalments are as less as are those daylong trips to the outskirts of the city. Skipping a home insurance for your rental house to save money is a bad decision and an unnecessary risk. Also, a higher deductible means cheaper insurance rates.

• We think we don’t have much to insure but take a closer look at the branded clothes, , appliances, furniture and you will see how the belongings add up to quite a lot. So, your insurance protects all your assets for you.

• The insurance covers your legal defense costs too, if you’re dragged to court.

• The insurance takes care of your living expenses i.e. hotel bills and meals in case you have to leave the rented dwelling while repairs are being done.

• A history of tenant insurance going claim-free improves your credit score and in future, it can help you in getting bigger home loans approved.

Conclusion

Make sure you get the full details about coverage, benefits, discounts, all terms and conditions, etc. from your insurance provider. There should not be any hidden charges. You can opt for home insurance for tenants from HDFC ERGO which is one of the trusted providers in the country. With HDFC ERGO you can also avail discounts up to 45%. Many tenants have insured their belongings from this insurance company by paying a small monthly premium.

To sum it up, the first rule of being a good tenant is to treat your owner’s home as your own. You certainly don’t want to pay him anything extra; rent is enough. In case something still goes wrong, you can relax as your home insurance for renters policy has you covered!

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

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