Housing insurance for rental housing: is it necessary and how to get it?

Housing insurance for rental housing: is it necessary and how to get it?
Housing insurance for rental housing: is it necessary and how to get it?

Megasports4u.com – Housing insurance is an insurance product that offers protection for homeowners or residents of the house from various risks that may occur, such as fire, theft, natural disasters, and others.

Housing insurance usually covers the building of the house, the contents of the House, legal liability, and additional costs.

But what if you live in a rented house? Do you also need housing insurance?

The answer is depending on your situation and needs. The following are some things you need to consider before deciding to have housing insurance for rental homes.

1. What is already covered by homeowners?

Before you buy housing insurance for rental homes, you need to know what is already covered by homeowners. Usually, homeowners have building insurance that protects the building of the house from damage due to fire, natural disasters, or criminal acts. However, building insurance does not cover the contents of the house, such as your furniture, electronics, clothing, and personal belongings. So, if something happens that damages or takes away your belongings, you will not get any compensation from the building insurance.

2. What do you want to protect?

After knowing what the homeowner already covers, you need to determine what you want to protect with housing insurance for rental homes. You can choose to protect only the contents of the house or also the legal liability and additional costs. The contents of the House are all items that are in the house that can be moved or taken out. Legal liability is your obligation to pay damages if you cause damage or injury to another person or someone else’s property. Additional costs are costs that arise because you cannot live in a rental house due to damage or disaster, such as hotel costs, food, transportation, and others.

3. How much is your stuff worth?

One of the factors that affect housing insurance premiums for rental homes is the value of the items you want to insure. The higher the value of your goods, the higher the premium you have to pay. Therefore, you need to calculate the value of your things accurately and realistically. You can use the reimbursement method or actual value to determine the value of your items. Replacement cost is the cost required to purchase a new item that is equivalent to an old item that is damaged or lost. Actual value is the market value of old goods that have been adjusted for depreciation or impairment.

4. How to get housing insurance for a rental home?

If you have already decided to have housing insurance for rental homes, the next step is to find an insurance provider that suits your needs and budget.

There are many insurance providers in Indonesia that offer housing insurance products for rental homes with various features and benefits. You can do research online or consult an insurance agent to get more complete information about these products.

After that, you can compare premiums, coverage, claims, and services from various insurance providers and choose the best one for you.

5. What are some tips to save on housing insurance premiums for rental homes?

Housing insurance premiums for rental homes can vary depending on many factors, such as location, size, type, and condition of the home, value of belongings, insurance coverage, and others.

However, there are some tips you can do to save on housing insurance premiums for rental homes, including:

  • Choose the insurance coverage that suits your needs. Don’t buy insurance coverage you don’t need or overdo it.
  • Increase the deductible or the amount of money you have to pay before the insurance pays your claim. The higher the deductible, the lower the premium you have to pay.
  • Install security or disaster prevention systems in your rental home, such as alarms, locks, smoke detectors, sprinklers, among others. This can reduce the risk of damage or loss of your belongings and make you get discounts from insurance providers.
  • Make premium payments on an annual or semi-annual basis rather than monthly. This can save on administrative costs and interest charged by insurance providers.
  • Take advantage of discounts or loyalty programs offered by insurance providers. You can get a discount if you buy more than one insurance product from the same insurance provider or if you are already a long-time customer.

Such is the article about housing insurance for a rented house: is it necessary and how to get it. Hopefully this article is useful for those of you who are looking for information about this insurance product. If you have any questions or suggestions, please write them in the comments below. Thank you for reading this article.

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