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Is obligatory to insurance a house when renting?

HOUSE INSURANCE WHEN RENTING – WHO PAYS?, OBLIGATORY?

Is the house insurance obligatory?

As difference with CAR INSURANCE, where insurance is OBLIGATORY, in respect of houses getting insurance is VOLUNTARY.

Although “voluntary”, getting house insurance is highly recommendable, not only to cover eventual risks of robbery, inundation, fire (as the recent unfortunate case in Javea and Benitatxell- We make the best use of this report to send all our best feelings to those affected and to their families).etc, but others as in case of renting.

When renting a property, third parties are using your house temporally, in long or short time (depending on the renting contract). In these cases, who has to pay the house insurance?.

In order to answer properly to this question, we need to list the basic covertures from the insurance:

  • Container: It covers all the construction and structural parts of the house, as walls, floor, roof, water-electric-gas installation, etc. So, company will pay the repairing of the damage caused by flooding, fire, and others to these elements.
  • Contents: It covers damage on furniture, whitegoods, electronic, curtains, beds, etc.
  • Civil Claim or Civil responsibility: It covers repairing or compensations when the owner has to pay to third parties for damage caused by the property container, or by the property contents.

So, usually, is the landlord who has to insurance the container of the house, and, if rented with his furniture, also with his contents. If the landlord is renting the property, or he has the intention to renting it, then, he must inform the insurance company. Informing the insurance company is really important. when contracting an insurance the company must know the current use and activity done in the property. So, companies may refuse to pay claimings and damages created by a non-declared activity as renting.

In the same way, if tenants are introducing in the property private or personal furniture and elements, they should contract and insurance to cover the eventual damage caused by the time they are in the property.

In that way:

– Landlord will be protected for the damage caused by on the house and/or on his contents.

– Tenants cover damage on her personal contents and/or belongings.

In the particular case of Civil Claim or Civil Responsibility, it will be also recommendable that “both“, landlord and tenants include this concept on their insurance, because:

  • In the case of the landlord, this will cover the risk of damage of the container or contents elements of the house to third parties, like tenants.
  • In the case of the tenants, this will cover the risk caused to the property, or to third parties, created by their selves or by their belongings.

Is it legal that landlord forces me to pay house insurance?

If it is agreed in the rental contract, YES.

Sometimes, landlords include in renting contracts clauses for which  the insurance to cover container and landlord contents is paid by the tenants. Please, pay attention on this because, if you have signed a contract in which you, and not the landlord, were forced to contract and pay that insurance, then, you have to do it, otherwise you, and not the landlord, will be directly responsible in case of damage.

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