Many people are confused about the difference between landlord insurance and tenant insurance. Most people think that they do not need to purchase a tenant insurance policy because the landlord has insurance. But it is not true. As a tenant, you need to have an insurance policy to protect your belongings. However, some landlords insist you have an insurance policy for their protection as well as yours. Therefore, if you are thinking of taking home for rent, it is important for you to understand what insurance you need and what is covered by your landlord.
This article will help you understand the difference between tenant and landlord insurance to choose the right cover for you.
What Is Landlord Insurance?
To understand the difference between tenant and landlord insurance, you need to know what landlord insurance is. It is a policy that provides protection for the property. For example, if there is fire and your building burns to the ground, landlord insurance will cover the cost to rebuild it. It also provides cover for your contents if you are renting out a furnished property. You can also get a cover for alternative accommodation in case your property becomes inhabitable due to natural disasters such as floods or storms.
Landlords can also get liability insurance with landlord insurance. In case a tenant sues them, this insurance will provide them with a cover by paying the compensation cost. You can purchase landlord content insurance and building insurance separately or combined.
A number of insurance providers are present in the UK. If you want to get cheap landlord insurance we suggest you shop around to get the best deal.
What Is Tenant Insurance?
It is insurance designed for renters rather than for individuals who own their homes. It will cover the cost of repair or replacement of your possessions if they are damaged by flood, storm or stolen. As a tenant, you do not need to purchase insurance for the building because it is the responsibility of your landlord. However, if you accidentally cause damage to the landlord’s building or content, renters insurance can help you pay the compensation cost or legal expenses. It is one common thing between landlords and tenants insurance that both of them offer legal liability covers to their users.
Tenant insurance also protects your security deposit. For example, if you caused damage to the landlord’s property, fixtures, or fittings and cannot pay the repair cost, this cost will be deducted from your security deposit at the end of the tenancy. Therefore by paying this cost, tenant insurance provides you deposit protection.
Some insurance providers offer content insurance and liability insurance within the same policy, while others offer it separately. Other than that, you can also add up extra covers to your policy, such as out-of-home cover or accidental damage cover. However, keep in mind the more cover you want, the more will be your insurance premium.
Do I need Landlord or Tenant Insurance?
Although it is not a legal requirement to have insurance as a tenant or landlord, you will get peace of mind that you are financially protected if you have it in place. For example, if your belongings are stolen or damaged or if a storm, fire, or flood causes damage to your property, insurance will cover you for the cost of repair or replacement.
There are a number of insurance providers in the UK providing both landlord and tenant insurance. Insurance premiums can vary from provider to provider, and de[ends on a number of factors that are different for different insurance types. If you are thinking of purchasing an insurance policy as a landlord or tenant, we suggest you shop around and compare quotes from different providers. It will help you get the best insurance policy at competitive market rates.