Home insurance is mandatory if you rent an apartment or a single-family home. You are responsible to the landlord for any damage you may cause to the apartment or house. In other words, the tenant takes out home insurance so that the owner can be compensated in case of damage. It is not compulsory in the case of a furnished apartment or a company apartment.
The Different Guarantees of a Home Insurance
The guarantee called “rental risks” is the minimal and compulsory guarantee that the tenant must insure. It is a guarantee that covers all the damages caused by the tenant to the owner.
The home insurance contract insures the furniture, the valuables, the various embellishments made by the tenant. The damages can be fire, water damage, explosion, theft, riots, etc. The insurance named “recourse of the neighbors and the third parties” is also proposed simultaneously with the preceding guarantee. It covers damage caused to neighbors.
The Insurance Contract
An insurance contract ratifies the agreement between the tenant and the insurance agency. It stipulates the type of insurance taken out, the beginning and end of the insurance, the damages covered, the types of property insured, and more. In short, the tenant must read the contract carefully before signing to avoid any misunderstanding.
For example, in the case of a fire, one might be tempted to believe that the insurance will pay as soon as there is a fire, but there are “certain causes” that the insurance would accept, others not. This should be written in black and white in the insurance contract. In case of fire, the insurance pays when the causes are accidental or when the fire was caused by smoke, lightning, a short circuit.
Remember to take out insurance only with professionals who have established their name in the profession.