Living in a Dwelling Owned by Another Person
(i.e. Rental Dwelling)
In general, as well as fire insurance to cover your contents, you will be required to take out personal liability insurance to cover liability towards the owner when you sign a lease agreement with a real estate company or owner to live in a rental dwelling.
※1 When a rental dwelling is damaged by fire or other event covered by your policy, damage to the dwelling is essentially covered by the owner’s fire insurance policy, and therefore you are not required to pay for the damage. However, you must bear the costs associated with damage to your contents.
※2 In addition, the lease agreement requires that the tenant return the rental dwelling to the owner in its original state when vacating. Therefore, if you cause damage to the rental dwelling, you may face a claim for damages from the owner.
※If you will live in company-owned housing or a student dorm, please ask your company or school what kind of coverage to get.
To prepare for the risk of contents damage and liability to the owner, we recommend that you purchase fire insurance for rental dwelling
Generally, most general insurance companies provide insurances such as the following.
Fire insurance for rental dwelling is sold as a package:(1) Fire insurance for contents and (2) tenant liability insurance.
(1) Fire insurance for contents covers damage to your contents.
(2) Tenant liability insurance covers liability for damages claimed by the owner as a result of the tenant causing damage to the rental dwelling.
Fire insurance for rental dwelling protects contents from fire and other risks.
Various types of insurance products are provided. The following shows the major perils covered by fire insurance for rental dwelling.
- Lightning, burst or explosion
- Windstorm, hail, or snow disaster
- Collision or falling of objects coming from outside
- Violence or destruction during a riot, strike, etc.
- Water leaks
※Losses caused by earthquakes, volcanic eruptions, or tsunamis are not covered by fire insurance.
- As coverage details vary between general insurance companies, please check to find the policy most suitable for you.
- Fire insurance for rental dwelling covers contents only.
- When you live in a rental dwelling, of course you do not have to insure the dwelling. However, you do have to have insurance to compensate for possible damage to the dwelling.
- When insuring your contents, you are required to notify the general insurance company of any valuable items in your possession such as jewelry and works of art, etc. If there is no such notification, the loss of such items will not be covered.
※Please note that the explanations about the general insurance referred above are based on the Japanese laws and practices. Please also note that the explanations referred above are examples. Actually, they may vary depending on each circumstance.
To prepare for the risk of an earthquake, volcanic eruption, or tsunami, we recommend that you purchase earthquake insurance
Recently, various natural disasters have been occurring around the world. In Japan, earthquakes occur more frequently than in other countries, so it is possible to be affected by an earthquake anywhere in Japan.
However, with only fire insurance, you are not covered for damage to your contents resulting from an earthquake.
※Japan’s earthquake insurance system is jointly operated by the government and general insurance companies.
Therefore, there is no difference in coverage and premium rates among general insurance companies.
“Earthquake Insurance for Dwelling Risks” covers losses resulting from an earthquake, volcanic eruption, or tsunami. These risks are not covered by fire insurance.
- Your contents burnt down by fire, including its spreading thereof, caused by an earthquake.
- Your contents collapse in an earthquake.
- Your contents damaged by a volcanic eruption.
- Your contents swept away by a tsunami.
- Your contents buried in an earthquake.
Earthquake insurance must be attached to fire insurance. It cannot be purchased separately.
You may attach earthquake insurance while your fire insurance policy is valid.
- In the case of a rental dwelling, the contents contained in the dwelling are covered by earthquake insurance.
- The amount insured for earthquake insurance is within a range of 30-50% of the amount insured of the principal fire insurance policy.
- The maximum amount insured is 10 million yen for contents.
Premium and Discounts
- Premiums differ depending on the structure and location of the dwelling.
- Discounts are applicable to building structures that meet certain grades stipulated by Law.
- There is a tax deduction system for earthquake insurance.
※Please note that the explanations about the general insurance referred above are based on the Japanese laws and practices. Please also note that the explanations referred above are examples.
Actually, they may vary depending on each circumstance.