Home and renters insurance, are they covered?

by Alex Musk

Are you going to rent your house? Not so fast! Wait, you should know all this about home insurance and its coverage for the tenant, as it may be of great interest to you. We are convinced that you want to know and see more about it, so we invite you to read this post carefully.

What does home insurance cover if I rent my home?

It all depends on the casualty insurance coverage that has been contracted. Some owners use basic home insurance even for rent, which can pose a risk since it generally only covers the policyholder since the use of the home must be specified in their policy.

A good home product must cover both the content of the house (structures such as walls, doors, windows, walls, fences, fixed water, electricity, or telephone installations) as well as the content, the material goods found in it, from furniture to household appliances passing through all kinds of objects.

But rental insurance must especially contemplate the most important coverage for the landlord, such as:

  • Civil liability of the landlord, who is responsible for possible personal and material damage caused to the tenant.
  • Legal defense of the landlord, useful for advising the owner on legal issues or managing a claim against the person who lives in a flat owned by us.
  • Malicious damages of the tenant, covering the damages caused to the home with the intention of destroying that were attributable to the tenant after the eviction or abandonment of the home.
  • Non-payment of rent, which provides for financial compensation -up to the amount and period that would have been insured- for non-payment of rent until the eviction of the delinquent inhabitant.

What insurance should I take out if I rent my home?

As always, it is left to the policyholder’s decision. Perhaps we fully trust the person to whom we rent the house and decide that it is not necessary to carry out any other management and that with basic home insurance, we care enough to respond to this situation.

But, as we pointed out before, this product never covers both parties in the same contract, so the ideal thing is for each one to subscribe to their own policy, focusing the coverage on their own interests.

Is home insurance mandatory for the renter?

It is not, but it does not mean that it is not recommended since it is always recommended that the tenant has his own home insurance that covers him as a tenant. But by default, as has already been mentioned, the policy covers the policyholder, who is the one who pays the premiums for a reason and is generally also the owner of the home.

Home insurance for tenants is similar to another home insurance product, although with two important differences: it generally does not have coverage for the continent, although it can be contracted in the first risk mode, and it can include specific guarantees in order to face to possible claims of the owner.

For example, the civil liability of the tenant in the event of an accident that has consequences in the home. And of course, the content can be included, that is, all the tenant’s belongings (furniture, fixtures, objects), insuring these against fire, theft, or water damage and contracting an extensive list of guarantees.

Who pays for home insurance, the renter or the landlord?

As we have already seen, the logical thing is that each party pays its own insurance; any other option is part of the casuistry of the negotiation between the parties, which does not affect this insurance issue,

Everything will depend on the agreement reached by the tenant and the landlord, having the freedom to choose the best option for both. But that is another story.

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