India is home to billions of people that fall into different income classes. As per the World Inequality Database report, our country falls into the tab of countries having ‘extreme inequalities’ where the average national income stands at Rs. 2,04,200. These numbers clearly indicate that having a home you can call your own is not financially easy for many, let alone with the rising inflation rate.
If you are near ground reality, you would agree that a majority of people in different cities live in rented places. Irrespective of property ownership, the protection of belongings is everyone’s right and preference. This is where the concept of renters insurance comes into the picture to benefit tenants in India against events like burglary, theft, or natural calamity.
If you also live in a rented space and want to know more about tenant insurance, you’ve come to the right place.
What is Renters Insurance?
Renters insurance falls under the home insurance category and is meant to provide coverage to the tenants like you who live in rented homes against unforeseen casualties. It is a legal contract that binds the insurer to provide financial aid to the insured individual in case of events like theft or fire accidents, leading to the damage or loss of your content or belongings.
You can select the tenant insurance tenure from one year or more depending on your specific needs. Also, as in many other types of insurance plans, the premium will vary based on the insurance coverage amount you select.
Why Should You Buy Renters Insurance?
Being a tenant, paying the rent on time is a liability in itself. Facing any other financial setback resulting from unfortunate events may act as a shock to your finances, which is why buying renters insurance makes sense. Here’re some of the benefits you can avail of with the right home insurance for tenants:
- Financial aid for the losses or damages incurred to your belongings kept inside the rented house as per the policy terms
- Faster financial recovery of losses using the compensation provided by the insurance company
- Peace of mind knowing that your assets and belongings are protected under an insurance plan you can count on
What is Covered under Tenant Insurance?
If the idea of buying renters’ insurance sounds good, you should also know what it usually covers before making the purchase decision. Given below are some of the common inclusions of a tenant insurance plan:
- Coverage for the loss/damage resulting from a house fire
- Coverage for loss/damage resulting from theft and burglary
- Insurance cover for electrical breakdowns leading to damage to your home appliances
- Insurance cover for man-made hazards like a riot, strike, etc.
- Accidental damages to your home/belongings
- Coverage for an alternate accommodation during the recovery of a damaged home
Renters insurance plans offered by different insurers may vary from one another in terms of features, benefits, and pricing.
What is Not Covered under Renters Insurance?
While there can be several unfortunate events leading to damages to your home/belongings, not each of them is covered under tenant insurance. In general, home insurance for tenants does not provide coverage for:
- Damages caused during a war-like situation or war
- Loss or damage of collectibles such as old stamps, coins, artwork, etc.
- Belongings that are more than ten years old
- Consequential losses that are not a direct result of renters insurance inclusions
- Wear and tear of the property
- Cost of land irrespective of the circumstance
- Under-construction building
Add-Ons You Can Select with Your Renters Insurance Policy
Other than the basic insurance coverage provided by your renters’ insurance policy, you can include additional coverage with the help of add-ons. This is also referred to as a voluntary extension of the policy benefits by an extra premium. Some of the common add-ons you can select for your policy are:
- Portable electronic equipment cover for electronic items you possess such as a laptop, camera, sports gear, etc.
- Coverage for jewelry and valuables based on their prevailing market value
- Terrorism cover for damages caused due to a terrorist attack
Read more – Buy Bharat Griha Raksha Policy online from SecureNow
About The Author
Shivani
MBA Insurance and Risk
She has a passion for property insurance and a wealth of experience in the field, Shivani has been a valuable contributor to SecureNow for the past six years. As a seasoned writer, they specialize in crafting insightful articles and engaging blogs that educate and inform readers about the intricacies of property insurance. She brings a unique blend of expertise and practical knowledge to their writing, drawing from her extensive background in the insurance industry. Having worked in various capacities within the sector, she deeply understands the challenges and opportunities facing property owners and insurers alike.
