Tenant’s liability explained
Whenever you rent a house, flat or other property, you’re usually liable for damage to the building. That’s why it’s good to know in which cases you are liable and how your insurance protects you.
If you’ve never heard of tenant’s liability and want to know what it entails and how to insure yourself against it, read on and find out what type of damage you are liable for and how to protect yourself against the associated financial consequences.
What is tenant’s liability?
If something goes wrong in the building you’re renting and you caused it (even if it was by accident), the landlord can hold you liable for the damage. Here are some examples:
- Fire caused by a forgotten candle left burning
- Water damage caused by a bathtub overflowing
- A window being accidentally broken by a football
Why is this necessary? Because, as a tenant, you are required to return your rented property in the condition it was in at the start of the rental period.
You are not liable for damage resulting from force majeure (storm damage, wear and tear from normal use, etc.). Moreover, if you have a ‘waiver of recourse’ clause included in your tenancy agreement, your liability will also be limited. We’ll get back to what a waiver of recourse entails in a bit.
Why you have to insure your liability as a tenant
In Belgium, as a tenant you are required by law to insure your liability as a tenant when renting a property that is your main residence. This prevents you from having to pay out of pocket if you are liable for damage to your rented property.
If you can prove the damage already existed before you started renting the property, or it was caused by force majeure or by the landlord, you are not liable. Here are some examples of cases in which you are not liable:
- Damage caused by storm or lightning
- Your heating system breaks down due to its age
- Discolouration of paint on the walls and minor scratches on the floor (normal wear and tear)
Waiver of recourse explained
When a tenancy agreement says that the landlord waives their right of recourse, it means that the landlord will not claim compensation from you for damage even if you are liable, and their insurance will cover the damage. However, it’s important to note that a waiver of recourse does not apply in all situations.
The conditions
- The waiver of recourse clause must be explicitly stipulated in the tenancy agreement
- Its wording must leave no room for interpretation and be correct from a legal perspective
- When renting to relatives in the direct line, a waiver of recourse is excluded by law
Want to know exactly what a waiver of recourse entails for you?
Being fully insured gives you peace of mind
Home insurance with tenant’s liability cover is compulsory. It covers any damage to the building you are liable for as a tenant.
But what if you lose the contents of your home in a fire? And what happens if you accidentally cause damage to your neighbours or their property? A full home insurance policy gives you the protection you need in such situations.
Practical tips for tenants
Renting a home involves much more than simply signing a contract. Here are some important things to keep in mind:
- Be sure to carefully read your tenancy agreement before signing it
- Carefully inspect the inventory of fixtures and fittings
- Check what is covered under your home insurance policy
This article tells you about all the things you need to arrange if you’re planning to rent somewhere.
Frequently asked questions
Be sure to include everyone living in the same home in the policy, so that everyone’s properly insured and you can avoid arguments over damage.
If that happens, the landlord will still be able to hold you liable for damage to your rented property. That’s why it’s a good idea to have your tenancy agreement checked by an expert and to not blindly trust standard clauses.
Not always. Be sure to check whether your home insurance policy also covers damage to third parties, like water damage to your downstairs neighbour’s flat.
No, not if you opt for a full home insurance policy, which – unless you chose a policy with limited cover – also covers your home’s contents.