Home Fire Insurance: A Necessity for Renters too!
When we think of our "home," various types of buildings come to mind, such as apartments, villas, studios, officetels, and houses. Among the potential accidents that can happen in these buildings, one of the most common and dangerous is "fire."
Fire accidents can lead to significant loss of life and property, making it difficult for households to bear the financial burden. Therefore, obtaining insurance to prepare for fire accidents is a wise choice. Home fire insurance, which we will discuss in this article, is a type of insurance that can be purchased to protect residential properties from fire accidents. Many may wonder if only homeowners can apply for home fire insurance or if it is necessary for tenants under lease agreements. There is some confusion surrounding this, but it's essential to clarify that home fire insurance is needed not only for homeowners but also for renters.
Why is home fire insurance necessary for renters?
Home fire insurance is essential for renters because they can be held liable for fire accidents caused within the rental property. For example, if a fire occurs due to faulty electrical wiring in the ceiling, the responsibility may fall on the property owner or landlord. However, if the fire results from the tenant's negligence while cooking, the responsibility will rest on the renter.
Moreover, in cases where the responsibility for fire accidents is ambiguous, the tenant can be held liable. According to Supreme Court precedents, if a tenant is deemed to have failed to exercise reasonable care and attention, meaning they did not meet the duty of a "careful manager," the blame for the fire could be assigned to the tenant.
Therefore, tenants should consider obtaining home fire insurance to protect themselves from potential fire accidents.
Coverage for accidental damages
Imagine that only the homeowner has home fire insurance, and a fire occurs in the apartment labeled "OO Villa 303." If the fire is the fault of the homeowner, the insurance will cover the damages. However, the situation is different if the tenant is at fault. In such cases, the insurance company that covered the homeowner's fire insurance might process the fire accident and then proceed to collect the cost of the accident from the tenant, which could involve seizing the tenant's security deposit or engaging in legal actions.
Therefore, tenants should contemplate obtaining home fire insurance to protect themselves from fire accidents and their potential aftermath.
Compensation for third-party damages
A fire accident in unit 303 of OO Villa can potentially spread to neighboring apartments, causing significant harm to third parties' lives and properties. In such cases, the person responsible for the fire, i.e., the one who caused it, must compensate the affected parties. Home fire insurance not only protects the policyholder's own property but also includes compensation for damages to third parties in case the fire spreads beyond the insured property.
Both building owners and renters should be aware that the insurance provided by landlords or included in apartment management fees often has limitations. As mentioned earlier, these policies may not adequately cover the needs of individual renters. Therefore, it is crucial to remember the importance of considering home fire insurance specifically tailored to individual needs as a precaution against unexpected fire accidents.