These days, most landlords insure their homes against risks such as fire, burglary, theft, and so on. But as a tenant, do we take such steps when we are occupying a rented property? On the contrary, we usually consider it as a third-party's property and would, therefore, avoid taking any such responsibilities. Let’s look at why even a tenant needs a home insurance.

Why do you need home insurance as a tenant?

As a tenant you need to know that a landlord’s insurance doesn’t cover your personal belongings, such as furniture, electronics, and so on. Moreover, you have to pay for any damage you might accidentally cause to the property. For example, if you’re cooking and a fire accidently happens that spreads to other parts of the building, you would have to incur the costs of repair even for the other apartments as well. This could have been avoided if you had a home insurance cover.

Home insurance for tenants covers two basic areas:

• Liability coverage which protects tenants if they or a guest damages the building. It also protects tenants if someone is injured within their rental unit and sues for damages.
• Content coverage which deals with the replacement or repair of lost or damaged possessions.

How to buy tenant insurance?

At present, there are no stand alone home insurance policies for tenants. If you wish to insure your personal belongings, then you can get yourself the tenants’ legal liability cover. Some private insurers offer this insurance cover as part of their home insurance such as Bharti Axa, Future Generali, ICICI Lombard, and so on. As prices and features may vary, we’ll assist you in comparing them and you can choose the best home insurance which meet your needs.

What should you look for when considering tenant insurance?

Ask your insurance provider to provide a thorough explanation of the policy cover.. A few features that you may wish to enquire about are:

• liability
• coverage
• replacement cost
• additional living expenses
• theft
• discounts
• deductibles

Important Pointers:

• Treat your rented house just as you would treat your own, or the resulting liability that may fall on you might be more than you can bear.
• Respect your landlord's assets and safeguard it with a tenant's legal liability cover.
• Home insurance is far cheaper than settling for the liability claim that your owner would raise against you!