Fire Insurance Options for Tenants

Posted on: Jan 13, 2025 | 3 mins | Written by: HDFC ERGO Team

Fire Insurance Options for Tenants

Fire accidents in homes in India are quite common. Since more than two-thirds of the population resides in rented houses this means tenants need to protect their property and their families from such disasters. One query which intervenes in such circumstances is whether a tenant can own fire insurance. This article will give the overall idea of renter’s insurance or home insurance and property insurance that are suitable for the tenants of India.

An Insight into Fire Insurance Policies Being Offered to Tenants

One of the many types of insurance, fire insurance or property insurance is an insurance coverage that pays the policyholder when a fire (or other related incident) occurs. It provides for the replacement value of the destroyed personal and real estate and the expenses of the repair of the damaged assets. In India, fire insurance is usually in force by the homeowners or the property owners, for their properties and assets. However, the tenants have an additional cover, which is they are allowed to buy fire insurance for their property.

Renters Insurance: A Suitable Option for Tenants

Renters insurance also can be called tenant insurance or flat insurance and it is an insurance policy that covers the personal belongings of the tenants when they live in a rented premise. One of the best ways for tenants to get their valuable property covered against a fire theft or other loss is to have such an insurance policy. The coverage of renters’ insurance is not very popular in India and is fairly a new concept and only a few insurance companies provide specialised renters insurance policies to meet the needs of the tenant.

Risks That Tenants Face That Calling for Renters Insurance

There are several benefits of renters insurance for tenants in India:

Protection of personal belongings: Also known as a habitational policy, it pays for the expenses of renting the personal property of tenants in case of fire or other risks including theft.

Liability coverage: Renters insurance also covers legal responsibility for the tenant for any accident which may happen in the house they are renting including covering for the medical bills.

Affordable premiums: It is general in India that the renters insurance premium is lower than the homeowners insurance premium because the insurer’s liability is restricted to the personal property of the tenant and not the house.

Conclusion

Renters in India therefore can purchase fire insurance in either the form of renters insurance or the form of renters riders to homeowners insurance policies covering personal property. It is important to note, however, that renters insurance, in the more traditional sense, is not easily attainable today; renters can, however, insure their valuable belongings against fire, theft and other events through what is referred to as niche or speciality policies or endorsements.

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

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