Many tenants think… If the landlord has insurance cover for this house, why do I need another one? One thing that many people do not know is that landlord property insurance excludes tenant’s belongings.
If you have a rental apartment or a home, you need property insurance to cover your items. It covers any item that is not part of the rental property such as furniture, goods, and other valuables. Some policies of this nature extend their coverage to the food in the fridge and items that are outside, maybe in the garage or shed. Property insurance protects your belongings from the risks of fire, natural disasters, theft, and damages caused by you or family members.
What is and is not covered by property insurance for tenants?
What is covered
The insurance policy provides coverage for all your belongings in the rented home including furniture, appliances, carpets and any other items therein. Usually, it covers items against floods, fire damage, storms, other natural occurrences, theft, and malicious damage. They also cover some items outside your living space, for example, garden furniture and lawn or garden equipments. Once you decide to take out property insurance for tenants, the insurance agent requires that you provide a list of all the items you need covered. They also require that you provide the real value of the items.
This may sound daunting, but you do not have to do it manually. Most insurance companies will have an online calculator to help in the valuing of your property. It is important to note that different companies have been varying ways of compensating damages. For instance, a certain cover, will replace items damaged with today’s market value, whereas others will consider the wear and tear of the item, before paying for the damage.
For those people who are always traveling, an all-risks cover will not be a bad idea. It will come in handily when you go on a trip with your personal belongings like phones, jewelry, and wallets. Freezer contents cover is another insurance cover that you can consider as a tenant, together with a cover for sports and garden equipments. Valuables are inadequately compensated in standard property insurance policies and you may need to have an additional cover for your pricey items.
What they do not cover?
While the property insurance policies for tenants covers almost all damages, most companies will not compensate damages because of the following scenarios:
1. Lose or theft of an item when you are away from the property. To ensure your personal items’ safety when you are out, you will require a more comprehensive insurance cover.
2. Deliberate property damage - If you willingly broke your glass cabinets or your sofa set, the property insurance cover will not pay for the damages. For example, if you fought with your partner or your little one broke the item, you will pay for the costs.
3. DIY gone bad - DIY projects are great ideas to make your rental home more personal. If in the process you ruin your furniture or cabinets, the renter’s insurance cover will not compensate you.
4. Damages on expensive possessions - If your jewelry, art collections and other valuables were damaged or stolen, you will not be compensated unless you have an additional insurance cover.
5. Most standard property insurance policies will cover natural events such as rain, hail, fire or windstorm. They will not cover floods and earthquakes. You will need to get an additional cover at an extra price.
Anytime you are shopping for a renter’s property insurance, ensure to determine what it covers and what it does not. This will help you in finding the right cover.
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