When you rent a house, theinsurance becomes a crucial topic both for the lessor that for thetenant. Weather events, fires, plumbing or electrical problems can occur at any time, making a repair necessary insurance coverage to protect both parties: but who is responsible for paying therental home insurance?
Home insurance: what is it and what does it cover?
L’home insurance it is a policy that protects those who sign the contract from possible risks damage to property or caused to third parties. Specifically, in the case of a rented house, there are various insurance covers that can be activated, both for the owner and for the tenant.
For the lessor, insurance protects the value of the propertycovering structural damage and offering a guarantee against the insolvency of tenants, who may not pay the rent. In fact, some policies allow you to recover up to 12 months of unpaid rentexceeding the traditional bail. The policy may also include legal coverage for disputes with the tenant.
For thetenantInstead, insurance can be useful to protect yourself from unintentional damage that you may cause to the property. For example, a fire or explosion due to a malfunction of worn systems can lead to significant damage. In this case, the insurance would cover the costs of the damage caused, while also insuring protection towards third partieslike the neighbors.
Who should pay for rental home insurance?
The responsibility of rental home insurance payment it can fall on both parties involved, both the landlord and the tenant. Both, in fact, run gods risks associated with ownership and use of the property.
The owner is responsible for the maintenance of the house and must ensure that the facilities as water or electrical systems are in optimal conditions. In case of bad maintenancehe is responsible for any damages. For example, if a faulty pipe causes a flood that harms your neighbor, the landlord will have to pay the repair costs unless he or she has a policy specifies that it covers such events.
The tenant, on the other hand, has the responsibility for the use of the property. If he causes damage to the house, voluntarily or unintentionally, he will have to face the consequences. An example would be the accidental rupture of a pipe causing flooding. Without insurance, the tenant would have to pay damages to the owner and neighbors.
To ensure complete protection and prevent costly legal disputes, it is therefore recommended that both the owner and the tenant take out adequate insurance coverage. Furthermore, there are integrated policies that can offer advantageous solutions for both parties, such as those proposed by real estate agencies during the signing of the rental contract.
READ ALSO: Mandatory home insurance: costs and benefits of protection against natural disasters
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