Tenant's Liability Insurance

Every one of us will take care and protect our hard earned house. We will go to any extend to make sure that our house is protected against all dangers. Most of us would have insured our homes by taking a houesholder's protection plan which keeps our houses and its contents safe from risks like fire, burglary, all risk etc.  Now the question is would we take the same level of care and precaution when we are occupying a rented property. By default, human nature will register it as a third party's property and most tenants would be least bothered about its care while in their custody.

Imagine a situation where in the morning rush, we forget to switch of the gas supply and the result is a fire in which the rented house is either partially or fully damaged. We as tenants have not lost any asset that was built up with hard earned money. But for the owner, he has lost his asset and any chances of the monthly income via rent. In this case it is only natural that the owner would hold the tenant responsible for the loss of the house. Most often the owner would not have taken a fire policy for the house that he had rented out as he doesn’t want to incur any additional cost when he can always hold the tenant liable for any damages to the house. It is under this logic and as protection against any defaults in payment of rent that a security deposit is taken from the tenant. In such a situation the owner will definitely sue us as tenants for the loss of his house. How will the tenant pay his liability towards the owner?

It is for such fortuitous incidents that tenant's legal liability cover can be taken. Tenant's Legal Liability insurance covers liability for damage to property rented by the Insured where the damage is caused by the actions of the tenant and the tenant is held legally liable. It pays the amount the insured is legally obligated to pay as a result of fire or explosion damage to that part of a non-owned building rented or occupied by, the named insured.

This insurance cover is offered by some private insurers in India as part of their Home insurance. It is not offered as a standalone policy in India. Treat your rented house just as you would treat your own house. Or the resulting liability that may fall on you might be more than you can bear. Respect your house owner's assets and safeguard it with tenant's legal liability cover. Believe me it is far cheaper than settling the liability claim that your owner would raise against you!