Civil liability insurance for rental housing

Home rental liability insurance is one of the questions that many owners ask themselves when looking to rent a property.

14 November 2022 Monday 23:44
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Civil liability insurance for rental housing

Home rental liability insurance is one of the questions that many owners ask themselves when looking to rent a property. It is about insurance that reports multiple advantages over compensation claims for involuntary damage to third parties.

A large number of tenants and owners of rented properties have verified how valuable it is to have this type of guarantee, especially when contractual breaches, theft or accidents occur.

The issue of civil liability within a rental agreement raises many questions in landlords and tenants alike. What coverage does rental liability insurance offer? Who bears the responsibility when an eventuality occurs? Is it mandatory to take out civil liability insurance if you rent? You can see all this in parts.

First of all, you have to see the concept. Civil liability is understood as the legal obligation to compensate or repair the damage caused to a third person or group of people. Article 1902 of the Spanish Civil Code states that "he who by action or omission causes damage to another, intervening fault or negligence, is obliged to repair the damage caused."

This necessarily entails a loss or damage for both the victim and the person responsible. The latter is expected to fully restore the situation, that is, to leave things in the state they were in before his intervention. Obviously, this supposes for the person in charge having to lose part of his resources.

In order to avoid the property damage that civil liability represents, many people have decided to hire the services of home insurance. Consequently, civil liability is transferred to an insurer that will be responsible for restitution, repair or compensation for damage to third parties caused from the insured's home.

When it comes to rental housing, there are very specific risks that require special coverage, both for the landlord and the tenant. One of the most debated issues has to do with civil liability within a rental contract: Who assumes it when the rented home causes damage to third parties?

Thus, when we talk about rentals, a normal home insurance covers the damages suffered by the property in the cases contemplated by the policy, for example, electrical, aesthetic damage, due to water leaks, etc. It can also include the structure, the fixed elements of the house and the contents, such as the furniture and goods that are in it. So what is the difference between homeowners insurance and renters insurance?

In this sense, there is no difference in what is essential, since in renters insurance you can include the coverage you want, the difference is that the possible risks are extended and the specific needs of the person are taken into account, in this case of the tenant, which are not the same as those of the owner.

In rental insurance for tenants, aspects such as advice, legal defense, protection in case of breach of contract, theft of your property and, above all, civil liability against third parties are taken into account.

It is not mandatory in any case to take out rental civil liability insurance for the tenant, although it is certainly recommended for him, since he will obtain greater protection and more peace of mind.

Renters insurance places more emphasis on the content than on the mainland, meaning that its guarantees focus on claims such as fire, explosion, lightning or malicious acts that may affect the content. The protection of the continent is the responsibility of the owner.

The coverages depend on the type of policy that each insurance company offers and the different modalities depending on the level of protection. The most common guarantees are the protection of the contents of the property from theft and damage, civil liability coverage, water damage, electrical damage, possible home breakdowns, legal defense, and recovery of the deposit.



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