Home Insurance for Tenants
What Is Home Insurance and Why Is It Important?
Buying a home is one of the biggest investments you make in your life. Thus, it is important to safeguard this mammoth investment against issues like theft, property damage, impact due to calamities and other maladies. And how do we protect our home from these? With home insurance.
In simple terms, home insurance is a form of property insurance that provides financial cover for your home, protecting you against accidents or any other unfortunate events. A conventional home insurance offers protection against damage, theft, water damage and other causes. If you have add-ons, it also protects your belongings. You can also customise it by talking to your insurance provider.
How Does Home Insurance Help Tenants?
As per a national census, around 416 million Indians will call cities their home by 2050. This improves the rental scenario as more people today prefer renting rather than buying. When people move to rented spaces, they turn those houses into homes with their belongings that need protection against all adversities. This is where renter’s insurance comes in to the picture.
Home insurance for tenants ensures that tenants and their belongings are well protected without having to shell out the high premium that comes along with a conventional home insurance. Since, renters have no fixed timeline for their stay, these home insurances are incredibly flexible, which allows the tenants to choose their tenure as per their requirement.
The renter’s insurance offers you coverage against:
Damage: Protection against damage caused by an accident or external source.
Theft: Protection against robbery.
Own Damage: Protection against damage caused by self in uncertain situations.
Third Party Impact: Similar to damage, third party impact is an action caused by someone else that has harmed your belongings.
What Does a Renter’s Insurance Not Cover?
Home insurance for tenants is pretty extensive and covers a large spectrum of your belongings. However, there are a couple of things that such a policy might not cover such as auto-theft, valuable items, items that are covered in the landlord’s insurance and anyone’s belongings who is not family.
Before you take up renter’s insurance, you must figure out the total cost of your belongings. Your premium often depends upon the value of your things. Additionally, insurance providers will also consider the location where you have rented your house. A house with an iron-clad security, situated in a safe neighbourhood, will bring down the premium that you might have to pay on your renter’s insurance.
Taking up a renter’s insurance mandates you to go through the entire process with a fine toothed comb. You can also take help of a professional who can help evaluate your stuff and set the right premium that would fit your budget.
Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.