Germany is quite wealthy when it comes to different forms of insurance. People living there have access to a number of insurance programs, all for various purposes. But naturally, some insurances are taken out more often than others, either due to the law of the land or because of personal choice.
Either way, you’ll find that most residents in the country purchase only specific insurance policies as they may consider others redundant. Renter’s insurance happens to be one such coverage program that many people don’t invest in, assuming that it’s not worth the cost. But that’s not true.
Renter’s insurance is immensely beneficial for both landlords and renters, but more so for the former as their property is on the line. For this reason, it’s critical for property owners to ask for renter’s insurance when renting out their estate.
If you are still unsure about whether you should ask your tenants for insurance or not, here are five reasons to change your mind.
It Secures a Rental Property and the Belongings Inside
One common misconception many people have regarding damage coverage in rental units is that the landlord will take care of the repair expenses in case of an accident. That is not exactly true.
Yes, a landlord is required to provide a habitable place, but that doesn’t mean they will cover all the costs of damage control if there is a fire, flooding, or any other unpleasant incident in the rental.
With renter’s insurance, property owners can rest easy knowing they will not have to bear the financial burden of fixing destroyed goods inside their unit.
Let’s say your tenants are away and their place becomes flooded due to heavy rainfall, destroying the furniture and the overall interior. In such a scenario, nobody is really at fault, yet someone must take charge. That is where contents insurance for renters or renter’s insurance can come to the rescue. It will take care of all the costs of renovating the place and compensate for the marred furniture.
It Keeps Landlords and Renters Free of Legal Liabilities
Imagine your rental unit catches fire and an outsider (let’s say a visitor) gets hurt. When that happens, they will require treatment, and in some cases, they may file a lawsuit against you (the landlord) or your tenants. Either way, there will be a massive cost to bear, which contents insurance for renters will easily cover, provided the insurance program offers a good upper limit.
In simple words, a renter’s insurance will cover legal costs if the outsider decides to press charges, but up to a certain limit based on the program.
It Helps With Moving Expenses
If a property gets damaged and the tenants have to move out suddenly, the renter’s insurance will provide them with the funds to do so.
Many times when a rental unit is spoiled, the residents have to relocate, either temporarily or permanently. Regardless of the duration of a tenant’s stay at a new location, the move itself will cost a substantial amount of money, which they may or may not be able to afford so unexpectedly.
That’s where having a renter’s insurance can help, as it will cover all the shifting expenses.
It Gives Landlords a Sense of Security
Sometimes renters can get somewhat unreasonable and expect their landlords to pay for repairs and replacements if an accident damages the property.
Usually, they do not have any legal ground to make such a claim, but if they are clever, they might come up with a story that suggests a lack of responsibility on the landlord’s part. For example, a tenant may say that the property owner didn’t get the plumbing fixed, which led to water damage. Therefore, the latter should pay for repairs.
To prevent such a thing from happening, a landlord should ask for renter’s insurance so that there is no clash between the two parties down the line.
It Takes Care OF Property Damage Due To Pets
Pets can be quite a nuisance when it comes to chewing things and making a mess in a unit. Don’t get us wrong; we love pets; they are adorable little fellows. But they can cause damage to objects and people alike with their biting.
In such a case, renter’s insurance can be incredibly helpful and cover all the expenses incurred because of a pet.
Is Renter’s Insurance Mandatory?
No, tenants are not legally bound to have renter’s insurance, and a landlord cannot pressure them to take it out. However, a property owner can add a clause in the rental contract, asking the renters to provide proof of insurance. If such a condition is added to a lease, tenants become legally obligated to get renters insurance.
If you are a responsible tenant, you should consider getting renter’s insurance so that you can get a place to live anywhere you want. And that holds true whether you are a citizen or an expat in Germany.
Speaking of expats, if you are one, you should reach out to an expat insurance company to get details on all the types of insurance you should get while living in Germany.