The agreement you've signed includes specific insurance terms that are essential to grasp, especially concerning what's covered, the waiver of recourse, and the need for additional insurance on your part.
Article 10 in the rental agreement describes following clause:
10. INSURANCES
The Landlord declares that he has taken out insurance covering the Property against fire and damage and with waiver of recourse against the Tenants and undertakes to maintain it throughout the term of this lease agreement.
The Landlord also informs the Tenants that there is no insurance against damage and theft of personal belongings.
The Tenants must take out tenant's liability insurance covering their liability as Tenants.
What's Included in the Landlord's Insurance?
Your landlord has insured the property against fire and water damage. This coverage is designed to protect the building itself from these specific types of harm, ensuring that the structure you call home remains safe and sound. However, it's important to note that this insurance does not extend to your personal belongings within the apartment.
Understanding the Waiver of Recourse
A waiver of recourse is a key term in your rental agreement. It means that the landlord's insurance policy includes a provision that prevents the insurance company from seeking compensation from you, the tenant, for damages covered by the policy, such as fire or water damage to the building. This waiver is a protective measure, ensuring that you won't be financially liable for these specific types of damages to the property itself.
Why You Need Your Own Insurance
While the landlord's insurance covers the building, it does not cover your personal belongings or your liability as a tenant. Here's why you need to secure your own insurance coverage:
Civil Liability: Tenant's liability insurance is crucial. It protects you from the financial repercussions of being held responsible for any damage you might inadvertently cause to the property or injuries to visitors or neighbours. Without this coverage, you could face significant out-of-pocket expenses if held liable for such incidents.
Damage to Contents: Your personal belongings are not covered by the landlord's insurance. Damage to contents insurance ensures that your items are protected against risks like theft, fire, and water damage. This coverage is vital for replacing or repairing your possessions without bearing the full cost yourself.
Theft and Vandalism: Although not pleasant to think about, theft and vandalism are real risks. Insurance for theft and vandalism covers the loss or damage of your possessions due to these acts, offering peace of mind and financial security.