Having taken the option of renting a house rather than buying a home, you may not know whether or not you need an insurance cover. This is because your home is under the insurance of your landlord. However, the owners’ insurance cover does not cover your personal property in the house; it only covers the building structure of your home only. For this reason, you need a home insurance cover that is different from your landlord cover.
The kind of home insurance that you need as a tenant is referred to as the renter's insurance. The insurance is meant to cover you against risks such as theft, fire or any natural calamities. Here are some instances of how the renter's insurance can be of use;
For example, if there were a robbery at your home, the landlord's home insurance would compensate the loss up to a certain limit. If the door, the roof or window was broken that will be under his cover. However, any personal property that was damaged e.g. the television, the fridge, clothes, etc. and stolen could only be under your insurance. It is, therefore, important to have your insurance cover for such incidents.
As a tenant, you’re answerable to the damages that you may cause to your neighbour’s property and your body injury damages as well. If you accidentally knocked down your neighbour’s window, and in the process, you got hurt, you would have to compensate both losses for yourself of you are uninsured. However, if those accidents are under your renter's insurance, you don’t have to go back to the pocket to cover the loss.
The other reason you need an insurance cover as a tenant is that under it; you would be insured against the loss of use risk. This means that in case there is a calamity, which makes your residence not conducive for residing, the insurance company covers the bills of the alternative place that you live at for that term. The loss of use risk can also include your meals in case of a fire or anything happening in your kitchen and causing you to dine out.
In conclusion, the renters and landlord’s insurance cover are very different and cover different aspects of the home. The owner is only responsible for any damage to the building, depending on how the damage occurred. It is, therefore, advisable to have a renter’s insurance to cover your personal property. The renter's insurance will assist you to get your property back in case of theft or fire. It will also insure you against the accidents that you may encounter with your neighbour e.g. accidentally breaking someone's door. The insurance will also cover the amount you spend in a hotel if you have to relocate from your house because of some factors like a building being fixed after a break. It also covers your meal if you are unable to cook at home due to an accident that affected the functioning of the kitchen.
However, note that different insurance companies have different policies. You, therefore, need to evaluate your options to ensure that the insurance company you choose covers all the risks you would like to insure yourself against as a tenant.