renter's home insurance

How Does Renters Insurance Work? A home policy is insurance that covers the damage suffered by a home as a result of the risks contemplated in it. That is to say: the insurer with which it is contracted guarantees that it will pay for the repair of the damages (electrical, water, aesthetic, etc.) as long as it is thus reflected in the policy. Its coverage can be extended to the continent (the structure of the house and the fixed elements that are part of it) and to the content (the furniture, belongings, and personal belongings that are in it).

Now, what is the difference between home insurance for renters? In essence, none. With home insurance for renters, the container and the contents can be equally protected, as with any other multi-risk home policy. The difference is rather that the risks are expanded to take into account the specific needs of someone who does not own the house and who signs a contract to live there.

For this reason, aspects such as legal defense are taken into account, offering advice and protection in case of breach of contract, for example. Or Civil Liability as a tenant, which guarantees a sum to cover damages caused to third parties. Or theft, in order to protect the tenant's personal assets, which are outside the scope of home insurance that the owner may have.

In no case is it mandatory for the tenant to take out insurance, although it may be highly recommended. Especially if you have particularly valuable personal property (for example, computer equipment). Home insurance for renters provides extra peace of mind, knowing that you are protected in any situation. 

It must be taken into account that each company may or may not include certain coverage as standard or optional and also offer different types of rental insurance, depending on the level of protection. 

In any case, there are a series of more or less common guarantees in most policies, which we will detail below, so that you know in which situations home insurance for renters can protect you.

• The most interesting coverage for you as a renter is the one that protects the Content —that is, your personal assets— in case of theft, fire, or other covered risks that could damage them. With this guarantee, the company not only covers the cost of replacing the goods, but also the material damage that the incident may have caused.
• Some companies extend the theft guarantee to the outside of the home. For example, if you are mugged in the street and your jewelry or cash is stolen or if your credit cards are used fraudulently, the insurer offers you compensation for the amount stolen, up to the limit agreed in the particular conditions. of the policy.
• The Civil Liability coverage responds to situations in which you can cause damage to third parties (both you, as a landlord, and any person in your family who resides in the home). The companies give you various options for amounts to receive, depending on what you agree on in the policy (normally, you can choose between insuring sums of 60,000 euros, 150,000 euros, or 300,000 euros).
• With the Water Damage guarantee you will be protected against one of the most common incidents.
• In addition to water damage, electrical damage may be included. For example, if there is a power surge and an appliance breaks down.
• Assistance, before possible breakdowns of the home. Some companies offer complete assistance coverage that extends the basic guarantees. In many cases, you have a helpline 24 hours a day.
• Legal defense, in case you have to process a claim.
• Deposit recovery: if the landlord fails to comply with this part of the contract and refuses to return it to you when you decide to end the rental, despite the fact that you have followed the steps stipulated in the contract, the company supports you by processing the claim of the same.
• As an optional guarantee, some companies such as Mutua Madrileña include IT advice among their rental insurance services -both for owners and tenants-.
• Hiring a broader policy - the equivalent of all-risk insurance - can also include more valuable assets, such as jewelry or money.
• Aesthetic repair of goods.
• Depending on the company, the list of guarantees may include services such as DIY repairs. This is the case of Caser Inquilinamente, which offers it in its three types of policies for tenants.

Before taking out insurance, the first thing you should do is compare. Thus, you will know which insurers offer the most appropriate solution for you, to ensure your assets and protect yourself against cases such as Civil Liability. In this way, you can choose the one with the best quality/price ratio.