Who Should Buy a Home Insurance: Owner or Tenant?
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Most of the people do not take it seriously to insure the house, particularly in developing countries to save premium and particularly when you live in a rented house, you will always think why should I insure my house.
Home insurance is meant for anyone who has a home whether own or rented. There is a myth that only homeowners should buy a home insurance plan. Irrespective of the fact that whether you are a tenant or owner, buying home insurance should be your top priority.
Courtesy - freerangestock
Must Read: Why Should You Insure Your House?
It’s a misconception that only house owners should buy a home insurance. Although, the house may belong to a landlord but it has contents in it which belong to occupier or tenant.
Suppose you live in a rented apartment and a devastating fire/engulfs furniture and other appliances. If you have a home insurance policy you can manage to settle back to normal life again easily and without any financial stress. Similarly if a storm or if a flood hits the house, it may happen that there is no damage to your house. But in all probability, you will lose everything in the house which of course belongs to you and not the owner. Hence as a tenant also one must be prudent enough to buy and cover such risks.
Further, most of the insurance companies will provide exciting discounts to people who buys over many home insurance covers. However, don’t let discounts make you buying those covers also which you don’t need. For instance, if you are a landlord then avoid buying a policy to cover contents of the house. Leave that to the tenant.
Companies also offer discounts if you buy it for a long duration. You can insure the house for up to 10 years, which not only gives peace of mind but you also get a chance to earn lucrative discounts. This will also save you from the botheration of renewing policy every year.
Also when certain people insure the house due to compulsion from the bank, they generally take insurance for only the house to save the premium. In such case also one should insure the contents, to the extent you can afford to pay a premium.