Is a tenant required to have insurance?
The law does not require a tenant to have insurance. The fire insurance that is mandatory in condominium buildings is owed by the owner of the unit, that is, the landlord (Civil Code, article 1429).
The lease can, however, require the tenant to hold contents and civil liability insurance. If the clause exists and was accepted, it is a contractual obligation: the landlord can ask for proof of the policy and of its renewal every year.
What the landlord's insurance does not cover
The landlord's policy covers the building and, if included, the contents the landlord owns. It does not cover:
- Your belongings: furniture, appliances, computer, clothes, bicycle.
- Damage you cause to others: water running into the flat below, a plant pot falling from the balcony, your dog.
- Damage you cause to the home, when it is your fault.
What contents insurance covers
Contents insurance (seguro de recheio) protects the movable property in the home against fire, water damage, storms, theft or burglary and glass breakage, depending on the covers chosen. The sum insured should match the value of your belongings: make a list, with photos and receipts for the most valuable items. With a sum insured below the real value, the insurer pays each loss only in the same proportion.
Almost every contents policy includes personal civil liability: damage that you, your household or your pets cause to others. That is the cover that pays for the neighbour's ceiling after a faulty washing machine.
Damage to the rented home: what the law says
At the end of the lease, the tenant must return the property in the condition received, except for the wear inherent in prudent use (Civil Code, article 1043). The tenant answers for loss or damage to the property, unless it results from a cause not attributable to them (article 1044).
Some policies cover the tenant's liability for damage to the rented property itself, for example a fire caused by carelessness. It is not automatic: check whether your policy includes it and up to what limit.
Tenant or landlord: whose insurance pays
| Situation | Insurance that usually responds |
|---|---|
| Building pipe bursts inside the wall | Landlord's insurance (building, water damage) |
| Tenant's washing machine floods the neighbour | Tenant's civil liability |
| Theft of the tenant's belongings | Tenant's contents insurance |
| Storm breaks windows | Landlord's insurance (building) |
| Fire caused by the tenant's carelessness | Landlord's insurance; the insurer can then claim from the responsible tenant |
Each policy has its own covers and exclusions: this table is general. For the landlord's side, see landlord home insurance.
Insurance does not replace a deposit or guarantor
Tenant insurance protects the tenant's belongings and liability. It does not guarantee the rent to the landlord. That is the role of the deposit, the guarantor, surety insurance or rent insurance taken out by the landlord. No guarantor? See the alternatives in renting without a guarantor.
Informational, not legal or insurance advice. Aluseg does not sell insurance. Source: Civil Code (articles 1043, 1044 and 1429).