When it comes to renting, insurance is beneficial for both owners and tenants. Landlords should insure their properties against any damage. Tenants should get insurance to cover their belongings and protect them from liability.
Landlords require rental insurance. Most policies will cover tenant damage and some will cover vacancy periods. Insurance companies will usually require frequent inspection reports in order to claim for any damage. This is why we recommend 3 monthly inspection reports. Landlords must provide their insurance information in any new tenancy agreement including the excess amount. If the property is not insured this still needs to be written in the tenancy agreement. Ensure you thoroughly read your insurance policies to see exactly what is covered.
Tenants should insure their belongings when renting, as the landlords insurance does not cover this. Tenants can also now be held liable for damage to the property. If tenants or their guests cause careless damage to the property they will be held liable for up to four weeks rent or the landlords insurance excess, whichever is lower. Tenants should look into contents insurance to cover their belongings and personal liability insurance to cover them in certain situations.
For any questions regarding landlords or tenants insurance be sure to ask your insurer. It is important that you are familiar with what your policies cover and for different situations.