Wellington Propertyscouts

Tenants - The Importance of Renters Insurance - 18th Sep 2016

A recent Tenancy Tribunal ruling is a landmark decision, but it is still so important for tenants to have renters insurance. There has been a long-running battle between a tenant and a landlord which, having started in 2009, was finally settled in 2016, in favour of the tenant. Major damage was caused in a rented property by a pot being left on the hob, setting fire to the house. As a result of the case, the Tenancy Tribunal put out a note to say that tenants are no longer liable for damage caused to an insured rented property, so long as the damage was unintentional.

However, there are still three main reasons as to why renters should have liability insurance:
1. The rules only apply if the landlord has insurance.
2. If flooding in your flat causes flooding in the rest of the apartment building, you are liable, likewise if a fire spreads to another house.
3. Landlords are fighting back, for example by limiting their insurance to major incidents, therefore making the tenant liable for minor incidents.

Of course, this inevitably means that landlord insurance costs will rise, which will be passed onto the tenants, landlords will also be more careful about choosing the right tenants.....something Propertyscouts always takes very seriously on behalf of the landlord.

Read the full article: http://www.stuff.co.nz/business/money/84326599/Budget-Buster-Renters-you-re-not-off-the-hook-yet

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