by Martin McRandal | 3 min read | September 11th, 2019
Perhaps you own and live in your apartment; perhaps you rent an apartment; or maybe you are a landlord and rent out your apartment. In each case, you have some particular issues and risk exposures to consider in relation to your insurance needs. We will take a look at some of those as they relate to Allianz home insurance products.
If You Are an Owner Occupier
What Cover Do I Need?
If you both own and live in your apartment your insurance needs are fundamentally the same as any other home owner, meaning you need home insurance, covering both:
- Building(s)
- Contents
It may be the case that insurance cover is already arranged for the apartment block, perhaps by a management company. If this is the case, it is likely that it will cover only the buildings, so you will need to arrange cover for your contents yourself.
What Am I Covered For?
If you have buildings insurance cover through your management company, it should automatically cover your legal liability as owner of the buildings for injury to others or damage to the property of others (e.g. a visitor trips within your home on an uneven step and is injured).
Where you have contents insurance cover it should automatically cover also your legal liability as occupier of the buildings for injury to others or damage to the property of others, (e.g. your guest trips over a rug within your home and injures themselves)
It should also cover your personal legal liability away from the home (e.g. if you cause an accident whilst cycling)
In addition it should cover your legal liability for injury to domestic employees (e.g. if you have a cleaner come in once a week)
Things to Consider
If buildings insurance is arranged on the apartment building by a management company, you need to know what it does and does not cover. Ask your management company for a copy of the insurance policy.
Thinking about renting a room out? You need to inform your insurer of this. If this is acceptable to your insurer then they may amend your premium, cover, and/or terms of your insurance.
If You Are a Renter
What Cover Do I Need?
If you rent your apartment you need Renter's Insurance.
What Am I Covered For?
Renters insurance, or contents cover, protects possessions (used for domestic purposes) owned by you and other household members whilst the possessions are in the home. If you have any personal possessions that you wish to cover away from the home (e.g. jewellery, bicycle, laptop, mobile phone, etc.) then you need to request that cover be extended for this.
Renters insurance also covers your legal liability for the following:
- occupier of the building (e.g. you live in an apartment above ground floor and leave a tap running which floods. The water seeps through and causes damage to the apartment below)
- your personal liability away from the buildings (e.g. you or a member of your household causes an accident while cycling)
- domestic employees (e.g. a cleaner is injured whilst carrying out their cleaning service in your home and the accident was caused by or contributed to by your failure to provide a safe working environment.)
Things to Consider
If your apartment came fully or partially furnished, your landlord may have already arranged contents cover for the items already in the apartment. However, you will still need your own contents cover for items you bring into the home such as your electronics and personal belongings. You would be surprised at the value if you add up the cost of your clothes, electronics, jewellery, etc.
If you are sharing an apartment with others you need to inform the insurer of this. It is normal for insurers to allow you to insure possessions owned by you and members of your immediate family.
If You Are a Landlord
What Cover Do I Need?
As owner of an apartment unit which you let to tenants, you need Landlord Insurance.
What Am I Covered For?
When you purchase Landlord insurance it should cover the following:
- Loss of rent you experience when the property in uninhabitable following an insured loss, such as a fire
- Contents if you rent your apartment out as partially or fully furnished.
- Your legal liability for injury to others and damage to the property of others in connection with your ownership of the property and your ‘business’ as landlord. (e.g. you provide a faulty electrical item and your tenant gets injured)
Things to Consider
Check with the building’s management company to see if their insurance policy covers the buildings. Familiarise yourself with what is and is not covered by the management company’s policy, and ask for a copy of the insurance policy.
If you live in or own an apartment, you have particular risk exposures when it comes to insurance. Regardless of whether you are a landlord, renter, or an owner occupier you should take care when selecting your home insurance.
Many choices we make in life can require a degree of courage, big or small. Whether it’s the moment you decide to settle down, or choose to buy to let. This is how great things happen and, at Allianz, we are proud to support people who have the courage to go forward in life.
Visit our website for information on Allianz Home Insurance Cover.
Allianz p.l.c. is regulated by the Central Bank of Ireland. Standard acceptance criteria and policy conditions apply.
Information correct as of date of publishing. This blog will not be updated or edited so the information may become outdated.
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