It is a common misunderstanding that only homeowners should get their properties insured with home insurance, not tenants. Many tenants avoid buying home insurance due to the lack of knowledge about home insurance and their usefulness to protect the home against damages or losses. However, as an occupant of a house, home insurances can be very helpful to the people living on rent.
If you are a tenant, this article will help you to understand the importance of home insurance for tenants.
Why tenants should purchase home insurance?
As a tenant, you must have felt that the home insurance bought by the owner of your property is sufficient to protect the house you are living in. This seems like a logical statement.
But one fact to pay attention: Though you do not own the house, you own the content inside it.
The house contains many valuable contents like the furniture you selected after spending hours, the electronics and many such precious things. Your house owner's insurance does not provide coverage in case any of the content gets damaged, lost or stolen. Moreover, in case any accidental fire in the building damages your house, then you have to spend from your own pocket to repair the damage. However, the easiest way to save yourself from this is Home Insurance for tenants.
There are two main types of property insurance are designed for tenants:
- Content coverage for the repair or replacement of spoiled or lost possessions.
- Liability coverage safeguards the tenants in case any damage happens to the building by them. In addition, this coverage frees the tenants from the liabilities when someone injured on the property files a case against the building.
How tenants are benefitted from home insurance?
- It is a myth that home insurances are expensive. In fact, they are affordable as their premium depends on the location and value of the property.
- The Fire or Wind coverage protects the renters in case any damage caused to the content inside their home. The tenants can choose the type of reimbursement, they can either opt for the cash equal to the current value of the possession or go for replacement cost
- Home insurances also provide theft coverage in case of burglary or theft leads to loss of content.
How to get renter's insurance?
Unlike for property owners, there are no exclusive plans of house insurance for tenants. Thus, the tenants can purchase the tenants' legal liability cover to ensure their houses. The privet insurance companies offer the liability coverage a part of their home insurance packages.
Accidents can happen at home which may lead to greater losses than expected. Whether stolen by a burglar or burnt in the fire, the home insurance for tenants saves the renters from spending money from their own pockets. Also, they can be beneficial to the owners as their claim on insurance is saved when tenant claims on their policy after damage.