Investing in home and contents insurance when you own your own home is essential, but what about when you are renting an apartment or house, or even renting out your property?
Many tenants mistakenly believe their belongings are covered by their landlord’s insurance, however this is not the case. Purchasing renters, or contents, insurance is not compulsory but it will cover tenants in the case of flood, fire, theft or serious damage to their personal belongings.
Renters insurance can cover against financial loss from risks such as fire or burglary, or against accidental loss or damage. It can also cover against accidental damage to fixtures and fittings of the property and cover possessions when moving between properties.
There are different levels of insurance with basic policies covering against fire and theft only, as they are the most comment threat against tenants. Other policies cover you for all forms of potential damage, as well as specific high-value items.
Landlords insurance, on the other hand, covers the actual property from a greater number of threats, including damages from tenants, natural disasters, and financial loss due to damage from tenants, or unpaid rent.
As with all insurance policies, Landlords insurance comes in many shapes and forms, with some policies even covering legal expenses should the landlord have to take legal action against a previous tenant.
Policies also differ based on whether the property operates as a short or long term rental, so it is always best to deal with a broker to determine the best policy to suit your needs as tenant or landlord.