Home Insurance plan safeguards one’s home against damages to the house or the belongings/contents of the house. The insurance policy ensures safety from various incidents that can cause substantial loss to the house, assets, and other liabilities associated with the place of residence.
Hence, it is highly recommended to opt for a property insurance plan, especially if one owns or stays on rent in an apartment or home. Renters can opt for property insurance as it can help to cover the content and the belongings. Although, the landlords may have a homeowner insurance plan for themselves that insurance may not include the renter or the liabilities held by them but only cover the structure itself and the grounds. Also, there is a growing number of landlords require tenants to purchase their insurance policies, and it is very beneficial due to numerous reasons.
Usually, tenants fail to take the value of their personal belongings into account, which is why not a lot of people would opt for it. It is only after a catastrophe or colossal effects of a natural calamity like floods, and one realizes the importance of an insurance policy. But by then, it is already too late for them, and the damage cannot be undone. Having an ideal home insurance plan can help you in the long run. Few things that a renter can cover under the home insurance plan are listed below:
- Damage caused by fire: Electronic devices, faulty conceal wiring, short circuits due to exposed wires, gas leakage, etc. are some of the very few reasons that could lead to the occurrence of a fire in one’s house. Having a home insurance plan beforehand is a must so that it can help you to recover the financial loss in such a critical situation.
- Man-made or Natural Perils: Uncertain or unanticipated natural or man-made disasters do not occur with a warning. If they happen to take place, the outcomes can be disastrous. But with the help of a home insurance plan, which helps you to secure from some of the perils listed below:
- Damage from an aircraft collision
- Flood and Inundation
- Burglary, Riot, strike and other malicious damage
- Subsidence and Landslide/Rockslide
- Content: The home insurance plan for renters ensures that one’s house is protected from burglary and almost all the types of catastrophes that will result in damage to assets or in-possession goods like computers, television, AC and other electronic peripherals, valuables, furniture, etc.
- Liability cover: Liability coverage is included in standard home insurance policies for renters if opted accordingly. This provides immunity if an individual (usually, a guest) is injured while in one’s home. It covers legal liability, up to the policy limit.
- Temporary living expenses: If the incident is devastating adequately to make a house uninhabitable, then a policy may allow some monetary benefits that would help one obtain a temporary place. One can relocate until the damaged insured property is repaired or rebuilt.
This article gives you a brief idea of what renters can cover under the home insurance plan. It’s always advisable to treat the rented house as your own house; otherwise, the resulting liability might put a big hole in your pocket. Stay insured.
Views expressed in this article are the personal opinion of Rakesh Goyal – Director, Probus Insurance, an Insurtech Broking Company.