When Rohan Ghosh moved into a rented apartment in Kolkata, he took a proactive approach to protect his finances. Instead of assuming the landlord’s insurance would cover everything, he opted for a renter’s insurance plan, recognising that personal belongings require separate protection. A landlord’s policy in his case covered only the structure.
He chose a plan that covered his furniture, electronics, and valuables on a replacement basis. To get the coverage right, he created a detailed home inventory, estimating the cost to replace items at current prices, excluding appliances provided by the landlord. He also listed high-value items, such as his watch and camera, supported by receipts and photographs.
One of the most common misconceptions in renting is assuming the landlord’s policy will cover a tenant’s ruined belongings after a fire, leak, or break-in.
“Because your landlord’s insurance literally stops at the walls and structural fixtures, you have almost zero risk of ‘overlapping’ coverage when insuring your personal property, i.e., the household items,” says Ashwini Dubey, Head of Home Insurance, Policybazaar.
If you are a tenant and the property is damaged by events like a flood or earthquake, it is typically covered under the landlord’s insurance. However, your personal contents remain your responsibility.
Since your landlord’s insurance only covers the building structure, you can consider opting for a home contents cover that is offered within a home insurance policy to protect only your personal belongings. “As a renter, focusing on a content-only cover ensures your furniture, fittings, televisions, electronic items, air conditioners, kitchen equipment, etc., are fully protected without overlapping with the landlord’s structure-only cover,” says Adarsh Agarwal, Appointed Actuary, Digit Insurance.
“Such insurance will cover personal belongings, furniture covered on a replacement basis (new for old), and valuables covered at an agreed value,” says Arti Mulik, chief technical officer, Universal Sompo General Insurance.
How to get adequate coverage
Calculate your baseline with a home inventory: Go room by room and estimate the cost to buy everything brand-new today, including electronics, appliances, furniture, clothes, shoes, kitchenware, etc. “If your landlord provided the refrigerator or washing machine, for example, do not include it in your inventory, as their policy covers it. If you bought it, include it,” says Dubey.
Schedule high-value items: Make a list of engagement rings or jewellery, luxury watches, fine art, sculptures, expensive musical instruments, and high-end devices. Scheduling it with ownership proofs like receipts or images of it and sharing an expensive items list with insurers during the purchase process helps in easier claim acknowledgement and processing.
“For items where receipts aren’t there, having a valuation certificate made from authorised personnel helps in insuring them all as well as in making claims,” says Dubey.
“To ensure complete clarity for both the insurer and the insured, it is always beneficial to provide a detailed list of contents along with their respective replacement values. This helps enable smooth processing and avoids any misunderstanding at the time of claim settlement,” says Mulik.
All-risk cover for wider home insurance protection
Upgrade from ‘Named Perils’ to ‘Open Perils’ (All-Risk) for broader protection. Named perils only cover damage from events explicitly listed in the policy, such as fire, theft, vandalism, or burst pipes. In contrast, open perils (all-risk) cover your belongings against everything unless it is explicitly excluded in the fine print. If available and within budget, an open perils policy provides much more comprehensive peace of mind.
“You can also consider the rent of the alternate accommodation add-on. This covers the cost of staying in another rented home if yours becomes unlivable after damage to the structure or interiors because of any insured perils,” says Dubey.
Things to keep in mind
When you purchase home contents coverage, you must declare a sum insured for your belongings that reflects the full cost of replacing the items. However, certain high-value or specialised items are typically excluded from this standard protection. These include unset precious stones, manuscripts, bullion, and artwork, among other items.
Also, this coverage is strictly limited to the contents on the premises and intended for personal use. So, items used for commercial purposes or stored outside the declared premises may not be protected against risks such as fire, natural disasters (floods, earthquakes, cyclones, landslides), or explosions.
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“War and deliberate damage to the items are also typical exclusions under the policy. If you move house and relocate your items, it is important to inform the insurer. One should read the policy document carefully to understand all terms, inclusions, and exclusions before purchasing the policy,” says Agarwal.
Anagh Pal is a personal finance expert who writes on real estate, tax, insurance, mutual funds and other topics
