Insurance for tenants: what is optional and what is compulsory?

As a (future) tenant, you may not be quick to consider what could go wrong with your home. And then suddenly the unexpected happens. A short circuit or glass breakage due to an unfortunate action by yourself or a family member, for example. Or a leaking washing machine, a heavy local thunderstorm or uninvited guests damaging your furnishings… These are things you may never have to deal with. But should such a thing should unfortunately happen, you can hopefully fall back on good tenant insurance. But isn’t that the case anyway?

That it’s compulsory? Yes. That it’s automatic? No.

You may have an idea about what tenant liability insurance covers. Or maybe not? The term tenant’s fire insurance may ring a bell. In both cases, it’s the same type of insurance for tenants. This insurance is compulsory throughout Belgium for tenants of a home that is also their main residence.

However, this will not happen automatically simply by signing your lease. So you will have to go to an insurer yourself to get everything sorted in time.

What does fire insurance for tenants entail?

Compulsory fire insurance for tenants ensures that costs due to fire or water damage for which you are liable are not for you, but for the insurer. Without fire insurance, you will be directly liable for paying these costs. For example, in the event of negligence, carelessness or simply after an unfortunate moment. Examples of this might be:

• Fire damage, e.g. from a chip pan you left on too long
• Water damage, e.g. due to overflowing bath
• Damage due to electricity, e.g. due to excessive load on an electric circuit
• And more

What should/can you have insured?

As a tenant, you must insure the part of the building that you actually occupy. As a flat resident, this is only your own flat. If you rent an entire house, you insure the entire building.

In order to estimate the coverage as accurately as possible, the insurer will want to discuss as many relevant details of your rental home as possible with you.

In addition to the compulsory fire insurance, which covers fire and water damage, you can also take out various optional insurance policies, such as:

• Contents insurance: insurance for, among other things, furniture, kitchenware, bed and table linen, household appliances, but also the more valuable items in your possession…
• Theft insurance: in case of burglary, theft, vandalism…
• Third-party liability: when you indirectly cause damage to a neighbouring property, for example, due to a spreading fire.
• Legal assistance in the event of a legal dispute following an incident. For example, in the form of reimbursed legal costs and/or fees, the possibility of obtaining additional damage assessment from a specialist or counter-experts, etc.
• And more

In your search for the right insurance, it is always a good idea to delve deeper into the guarantees, exclusions and possible additional options offered by each insurer. And, of course, the corresponding premium.

What if you are not at fault?

What happens if it turns out that the cause of the claim is not your fault as the tenant? In that case, all you need to do is contact your insurer, who in turn will follow up and handle the case for you.

Examples of such scenarios are:

• Storm damage due to falling trees or striking lightning
• Water damage due to flooding
• Short circuit due to a defect in the fuse box
• And more

Waiver of recourse: clear agreements are essential

An alternative to the traditional shared responsibility is the waiver of recourse. In this case, you, as the tenant, do not take out fire insurance yourself, but instead agree with the landlord to extend their insurance policy. That way, the landlord co-covers your risks, usually in exchange for a higher rental price.

It goes without saying that such an arrangement cannot work properly without watertight agreements between you and the landlord. Moreover, the interpretation of these agreements is not the same for every insurer. If you ever consider this option, it is in your interest to inform yourself as much as possible about it.

Conclusion: don't skip a step

Insurance plays a crucial role in protecting tenants from unforeseen circumstances. No matter how much respect you have for your rental home, landlord and even neighbours, as long as there are no insurance guarantees on paper, a small setback is enough to create major financial worries.

Therefore, don't skip any step in your search for the most suitable fire insurance. Compare the different basic, supplementary and optional covers and the premiums linked to them. Finally, read through all the terms and conditions in detail to avoid any unpleasant surprises later.

Get to know Ethias’ tenant insurance

Are you currently still searching for the ideal fire insurance for tenants? Then we would like to introduce you to our financial partner Ethias and their solutions for tenants. Take a look at their insurance packages now!