Why Home Insurance is Important for Tenants

Home insurance in India is not common, it’s mostly over looked as an extra expenses that isn’t really needed. Especially when you’re a tenant, getting home insurance is not something that crosses your mind. However, as a tenant it still is an important insurance you should consider investing in. Now, you might argue that home insurance is only necessary if you own a home, you should know that is not true. Even if you stay in a rented house it’s important to have home insurance. Now don’t be mistaken, Home insurance isn’t just to cover the physical structure but can also cover all the belongings in the house too. Home insurance is divided into 2 categories; structure insurance and contents insurance. Structure or building insurance will provide cover to the physical structure and all permanent fixtures in the house, while content insurance will cover all your belongings inside the house. This could include, your furniture, electronics, jewellery, vehicles, antiques and more.

Here are a few reasons why you would need Contents insurance:

Insures your belongings: Whether you have rented out a fully-furnished house, a semi-furnished house or you’ve invested in furnishing the house yourself, you are responsible for the safety of the goods in the house. Now despite all the security you have in place misfortune and disaster can strike at any time. Your house is not immune to theft, damage from vandalism, earthquakes and other natural calamities. If the furniture or other fixtures in the house get damaged or robbed, you are liable to replace them. This is where content insurance comes in. With content insurance you are financially secured in times like these. The insurance company will cover all content in the house and replace them without you having to spend too much.


While taking out a content insurance, you have to consider the values of all the items you would like to cover at home. A great way of doing that is to go from one room to another writing down all the valuable items and their cost. Through this method you can arrive at the estimate cost of your belonging in your house and decide the sum to be insured accordingly.

Liability cover: Did you know that if a guest or neighbour visit’s your home and gets injured they can hold you liable to pay for their treatment. Similarly if you were to accidently damage your neighbour’s property, you are also held liable to pay for the damages. With home insurance, this liability is covered. Meaning your insurance company will pay for the damages for you. Another reason why home insurance is important for tenants.

Robbery: Imagine walking into your home and finding all your furniture and electronics missing and having to replace all the items. Sounds expensive doesn’t it?  The financial expensive can be sky rocketing. With content insurance, you won’t have to worry about theft. The insurance will replace all the items that are missing or damaged in your house.

There are many insurance companies out there offering great deal on contents insurance. A few important things to remember while taking out content insurance are:

  • Don’t over value or under value your assets
  • Don’t forget to compare insurances
  • Make sure the sum insured is adequate
  • Check what the insurance covers and doesn’t cover. Few insurance policies may not cover jewellery and if they do they may cover jewellery only for a certain amount. So ensure your jewellery value is completely covered.

In conclusion, being a tenant does not mean you don’t need home insurance. You are still liable and have the responsibility to secure the belonging or contents in your home. A home insurance can save you the financial burden of having to pay of damages or replace missing items when mishaps like theft or natural calamities like fire occur.