Who insures the apartment when it is rented out?

Renting out or renting an apartment requires both the landlord and the tenant to have the right insurance coverage. To avoid unpleasant surprises, it is important that both parties understand their insurance responsibilities. In this article, we go through what applies and how to ensure a safe rental experience.

Quote:
"By reading the insurance terms carefully, you avoid unpleasant surprises if damage occurs."

As a landlord, you are responsible for having a valid home insurance policy that covers damage to the apartment and its fixed installations. This insurance protects you against costs for issues such as water damage, fire, or other accidents that may occur. An additional protection option is a rental insurance supplement, which can cover damage caused by the tenant as well as loss of rental income. This gives you extra security during the rental period.

Read also: How much does it cost to rent an apartment?

The tenant must have their own home insurance to protect personal belongings. Without this insurance, the tenant’s possessions are not protected in the event of burglary or water damage. Many home insurance policies also include liability coverage, which is important if the tenant accidentally causes damage to the apartment or to other residents in the building.

For landlords who want additional security, a rental insurance supplement is a useful option. This type of insurance covers situations that a standard home insurance does not, such as damage to furniture or appliances caused by the tenant. Rental insurance is offered by several major insurers and can be easily added to an existing policy.

If damage occurs in shared spaces such as stairwells or laundry rooms, the property owner or the housing association is usually responsible. However, if the tenant causes the damage, they may be required to compensate for it. This is why it is important that the tenant has a home insurance policy with liability coverage.

Liability coverage protects against costs for damage the tenant accidentally causes to the property or another person’s belongings. This may include breaking a window in the entrance door or scratching a washing machine.

Both the landlord and the tenant should carefully read the insurance terms to understand what is covered and what exclusions might apply. It is particularly important to be aware of any limitations depending on whether the rental is short-term or long-term.

Insurance terms can be detailed and extensive, but taking the time to review them properly is worthwhile. If anything is unclear, do not hesitate to contact your insurance company for clarification. Understanding your insurance coverage can save both time and money if something unexpected happens.