How does rental property insurance work? Who pays? Who gets it?

Rental property insurance benefits both the owner and the lessee. But who should bear this expense? Understand what the law says


Hiring rental property insurance is recommended to the lessee. Especially if he wants to protect the integrity of the property / Photo: Envato

The rental property insurance covers damages caused by damage to the residence. In general, insurers offer a basic plan, which provides for reimbursement in the event of accidents or natural disasters, such as fires, lightning strikes, and explosions. The consumer can also include other types of losses, such as thefts and even assistance services.

Given the benefits it offers, hiring rental property insurance is recommended to the lessee. Especially if he wants to protect the integrity of the property that third parties will use. But, by law, your membership is not mandatory to close the lease.

Despite this, the payment of the rented property insurance to the tenant can be placed as a requirement for the residence’s rental. This often generates doubt. After all, if the property is protected, shouldn’t the owner be paying the amount? What does the law say?

As well as other matters relating to landlords and tenants’ rights and duties, the answers to these questions are in the Tenancy Law. In practice, the legislation gives the owner the responsibility to pay the insurance of the rented property. But it also leaves that decision to contractual duty.

That is, if stipulated in the contract, the owner can transfer the fee to the tenant. It is the same as with other expenses, such as property tax and condominium fees. Anyway, if the property owner did not demand payment in addition to the insurance of the rented property, he would probably pass the amount on to the rent.

Attention points

There are two types of rental property insurance that the tenant can afford, and it is important not to confuse them. If you rent an apartment or unit in a condominium, the landlord must pay the condominium insurance. The purpose of this policy is to cover losses from fire or other accidents that occur in common areas. The advantage is that this fee is usually already included in the price of the condominium, which the resident pays.

The other modality is home insurance, which covers losses from accidents or disasters originating in condominium units or individual residences. As we understand above, this contract is optional and recommended for owners to protect their properties.

Did you find the ideal house or apartment, but getting the rent requires paying for the rented property’s insurance? The recommendation is to benefit from this as well. First, think that the expense can offer more comfort and security to the resident of the residence. If unexpected situations occur in the policy, it will not be necessary to wait for the owner to evaluate and carry out the repairs. The insurer must respond promptly and offer quick repair or reimbursement.

Another advantage has the assistance is included in the contracted policy. Insurance companies offer various services for homes, from the locksmith to electrician and plumber, which always end up being useful one day, depending on the package hired.

Read the property insurance adherence agreement to see if there is any assistance included. Also, find out how to activate them if you need to use the services. Is the owner open to agreements with other insurers? In this case, look for policies that offer benefits to both parties and values ​​that fit in your pocket.

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