A home insurance for tenants protects the tenant who causes damages to the building as well as to a neighbour’s apartment. In a situation where a tenant causes damages to a building, the insurance policy which covers the building could sue him/her by claiming fees for the work and repairs. By having a tenant insurance, it could prevent such a situation to happen by offering financial protection.
Home insurance for tenants is not mandatory, but it is an affordable excellent line of defense in an event where a tenant would need to cover substantial and unforeseen costs, as opposed to the relatively low price in acquiring a tenant insurance.
Also, if there’s a disaster in the building, the goods of the tenant are not protected by the building insurance. The home insurance for tenants not only protects the tenant’s goods, but it will also protect him/her from having to cover the costs of damaged goods claims from neighbours.
Furthermore, a civil liability coverage protects the tenant in the event where damage is caused unintentionally to its neighbour, whether it is damaged goods or an injury. It’s an excellent protection against any forms of legal proceedings against him/her.
Finally, a landlord is entitled to demand that a tenant purchases an insurance policy for tenants, provided it’s clearly indicated in the lease and that it has been part of discussions prior to the signature of the lease.