Do I need tenant insurance If I’m relocating to other city for work? What if I skip it?

I’m due to relocate to either Bangalore or Chennai once my job confirmation comes through, and I’ll be renting in a new city for the first time. Do I still need to buy tenant insurance even though the property itself belongs to the landlord? My main concern is whether the contents cover under a home insurance policy makes sense for someone in my position, especially given risks like fire, flooding, or theft in urban areas.

Advice by Dilip Baba, Head – Commercial &Speciality Underwriting, Go Digit General Insurance

A new job and a new city are a monumental step, but amidst the excitement of a fresh start, it’s crucial not to overlook the practicalities of protecting your assets. With India's residential rental market estimated to be worth over $20 billion, and urban housing increasingly catering to the professional and student population, ensuring your belongings are secure is a fundamental part of the moving process. Your possessions, from your furniture to your electronics, represent a significant financial investment, and a Contents Cover policy under home insurance is the essential solution.

This type of cover is designed to safeguard your personal belongings against a broad spectrum of unforeseen events. The financial security it provides is critical, especially given the rising risks in urban environments. A home insurance policy offers protection in the event of fire, explosion, lightning, and natural catastrophes such as flash floods (common in most urban cities), earthquakes, storms, floods, and landslides. Impact damage, such as missile testing operations, riots, strikes, malicious damage, and acts of terrorism, is also covered. 

Furthermore, policies usually cover water damage from bursting pipes or overflowing tanks, and sprinkler leaks. With an increasing number of households acquiring valuable consumer durables—with two-thirds of Indian households now owning a television and nearly half owning a refrigerator—protecting these items from risks like fire, explosion, and lightning is important.

Besides, the policy provides a critical safety net if your new home becomes uninhabitable. In such a scenario, the policy can typically help cover the expenses for alternative accommodation up to the mentioned sum insured; a vital benefit for someone who may not have a local support system to rely on. To further enhance your protection, consider optional add-ons like a Cover for Valuable Contents on Agreed Value Basis for high-value items. By taking this simple step, you can ensure that your financial well-being and possessions are secure as you embark on a new chapter.

Ultimately, tenant insurance is less about the property and more about protecting what you own inside it. Relocating for work often means setting up life in an unfamiliar city, where unexpected events can be harder to manage without a safety net. A contents cover under home insurance ensures that your financial stability is not derailed by fire, theft, or natural disasters, while also covering temporary living costs if needed. By securing this protection, you’re not just insuring furniture or electronics—you’re buying peace of mind, allowing you to focus fully on your career and new beginnings.

(Views expressed by the expert are his/her own. E-mail us your investment queries at askmoneytoday@intoday.com. We will get your queries answered by our panel of experts.)