Why is Home Insurance a Must for Tenants?

Posted on: Sep 7, 2021 | | Written by:

Why is Home Insurance a Must for Tenants?

Home insurance, commonly known as homeowners insurance or property insurance, protects your place of residence against damage from natural calamities, theft or burglary, accidents and even riots and terrorism. As people realize the numerous benefits and advantages of investing in home insurance, insuring rental homes is fast gaining popularity.

Why do you need insurance as a tenant?

Home is where our loved ones - parents, children and partners - reside, and protecting our homes is essential for the wellbeing of everyone who lives within it. While some home repairs and renovations can be planned for, some come unannounced, especially those caused by floods, earthquakes or accidental fires. All it takes is one untoward accident or natural disaster to trigger a cascade of unplanned expenses and financial stress. Home insurance is a sure shot way of securing your home and finances against unexpected calamities, whether it’s faulty wiring or a flood.

Consider these factors before you buy Tenant Insurance

If you have never bought home insurance before or are inclined to buy one soon, here is a checklist of things you should keep in mind:

Assess your needs

Every home and tenant has a set of distinct requirements and needs that should be considered before choosing home insurance. Avoid blindly following neighbors or family members without proper due diligence.

List your valuable belongings

The type of insurance you choose as a tenant will depend largely on the value of your home and its contents. If you have furniture, appliances, etc. stored in your home, you may want such items insured as well.

Age of your home

How old your home is will determine how frequently you may need to invoke your home insurance policy to cover expenses. You may need certain add-ons to cover recurring expenses due to annual leakages or floods during the monsoon and the like.

Deductibles

Deductibles is the amount that insurance holders spend out of pocket before the insurance cover kicks in. The deductibles will vary depending on the condition of your belongings, sum insured and the overall insurance plan. Higher deductibles tend to reduce the home insurance premium owed to the insurance company.

Benefits

Some benefits of home insurance policies are as follows:

1. Secures against unexpected natural calamities

Tenant insurance takes care of expenses that arise out of natural disasters and uncontrollable phenomena such as floods and fires that cannot be planned for. The increasing number of cyclones and severe weather can wreak havoc upon dwelling spaces. Such damages demand urgent attention in the form of capital and other resources.

2. Protects against theft

Burglary and theft can leave you feeling vulnerable and fearful. If your rental home is decorated or stored with valuable heirlooms or furniture, getting insurance that covers the contents of your home can be extremely helpful.

3. Alternate accommodation compensation

In case your home requires extensive repair and renovations, rental insurance will cover the cost of alternative accommodation.

4. Cover damages arising from fire, strikes, terrorism

Natural calamities aren’t the only threat to your home. Man-made calamities can also cause significant damage, which is covered by home insurance plans.

5. Covers accidental damages

Faulty wiring, short circuits and fires can destroy homes. A home insurance policy will cover expenses arising out of such repairs.

Process

The process of procuring home insurance is straightforward:

1.Valuation of your home and its contents

A structural audit of your home along with a valuation of its contents will be conducted by a certified auditor/surveyor. Once this is done, you can proceed with selecting an insurance policy.

2. Compare premiums and features across different policies

You can evaluate a variety of different policies by comparing them and pick the best home insurance India for your home.

3. Pick a policy and term

After choosing a policy provider, ensure that you select the relevant add-ons, the right term and an adequate sum insured.

Conclusion

We often take the safety and well-being of our homes for granted, until it's too late. Tenant insurance policies protect the most valuable asset you own - your home. There is a plethora of trusted options to choose from, so don’t wait and invest in a home insurance plan for yourself right away.

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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Living on rent? Protect your valuables with rental insurance