OWNERS VS. TENANT: WHO INSURES WHAT?
Thursday, August 21, 2014
Whether you are a homeowner or tenant, home insurance is essential to have, but there is a difference in the type of home insurance required. Do you insure the structure of your home, or its contents? Are there aspects of each you need to consider depending on your position?
Home Contents Cover
Derek Wilson, from the online quote and comparison website, Hippo.co.za, has given some insight in this regard. Wilson says, “Household insurance covers household contents such as electric appliances and furniture, which are owned, kept and used inside the property by the tenant. The owner will however be responsible for insuring household contents (such as the fridge or washing machine) should they belong to the owner and use thereof is included in the rental agreement.
“Homeowners insurance,” says Wilson, “Covers the structure and any permanent fixtures and fittings inside and outside the home that forms part of the building. The homeowner is responsible for taking out property/buildings/homeowners insurance. The tenant will however be liable for any damages to the permanent fittings and fixtures if they are damaged by causes not stipulated as covered under the building insurance policy. The tenant should ask the owner of the property for a copy of the building insurance policy to ensure that they know what damages to the property they will be liable for.
Domestic Care Insurance
Wilson further states, “Cover is also available for domestic workers employed on the property. Either owner or tenant, depending on who employs the domestic worker, can take out domestic insurance. This cover will provide financial assistance for your domestic worker and their loved ones in the event that they are injured in an accident, is no longer able to work, or if they passed away.”
Liability cover (Owner vs. Tenant)
Liability cover**, which is part of both buildings and contents cover, will protect either the tenant or the owner depending on who/what is at fault for the damages caused. The property/building/homeowners insurance may cover the owner in the event of the tenant being accidentally injured on the property. On the other hand, the household insurance policy may cover the tenant against any damages they may be liable for such as accidental damages to the owner’s property on the part of the tenant.
Whether you are a tenant or property owner, Hippo.co.za allows you to compare quotes and benefits from a range of insurers. “Eight out of 10 customers have saved an average of R348* per month on their car and home insurance,” adds Wilson.