Buildings insurance and contents insurance may seem standard for the owner of a home or commercial space, but what if you are a landlord or a tenant? What are the responsibilities of each when it comes to having the proper insurance? Who is responsible for the insurance and determining what it will and will not cover?
The answer is simple: both the landlord and tenant should have insurance. It may seem reasonable that the landlord should insure the building and the tenant will insure the contents, but it is not quite that cut and dried.
Landlords should carry comprehensive buildings insurance as well as contents insurance, depending on the type of rental unit being insured. Buildings insurance will cover against typical issues such as fire, theft, flooding and vandalism. It will also offer liability protection should someone on the property be injured due to accident or negligence.
One thing landlords may not be aware of is a clause that can cover loss of rental income, which of course is the reason for owning a rental in the first place. It will also cover the cost of hiring a letting agent or for placing advertisements to attract potential tenants.
On the tenant’s side, it is vital to have contents insurance as buildings and contents insurance covered by the landlord will not cover your personal property. Additionally, it is worth looking into accident insurance to cover mishaps in your flat or office unit. Any incidents may cost you the security deposit, which is likely to be much more than an insurance premium.