How to Insure Your Rented Apartment - Our Rental Agent Explains

Renting to Expats - How to Insure Your Apartment?

Do you have an apartment that you want to rent to an expat? Want to know what to consider and what to keep in mind? We’ll guide you through everything you need to know about the various insurance policies you should take out when renting your apartment. There are several types of insurance for both the property and its contents. Especially when renting out to someone else, it's important to secure the right insurance. After all, you can't be 100% sure how the tenant will treat your apartment. In the event of damage, accidents, or theft, you’ll be protected.

Avoiding Underinsurance

Securing home insurance has become more straightforward, but you need to carefully consider which types of coverage suit your needs. One key issue to watch out for is underinsurance, which happens when the value of your property and contents exceeds the amount you are insured for. Often, underinsurance only becomes apparent when it's too late. You can prevent this by getting an accurate valuation of your apartment and belongings in advance. A professional valuation report can help avoid this issue. If damage occurs, the insurance payout will be based on the valuation, whether it's partial or total damage. Without this report, there's no guarantee, and you may only receive a partial payout in case of loss.

Business Insurance

If the property is purchased through a business or used for renting to students or room rentals, business insurance is required. This also applies if the apartment is rented out for more than 300 days a year or if it's a mixed-use property (residential space with a shop, office, or restaurant). The first insurance you should take out is building insurance, also known as property insurance. This covers you for fire, burglary, and water damage. In addition to basic building insurance, it’s a good idea to add liability insurance to protect against any damage the building might cause to others or their property. For furnished apartments, contents insurance is strongly recommended. This is essential if you’re renting out the apartment. If you are using the furnished apartment yourself, it's better to take out personal contents insurance.

What Insurance Do I Need?

When choosing the right basic insurance for all your additional coverage needs, it’s important to look for the best, most affordable options. For guidance, it's a good idea to consult your insurance broker for advice.