Many landlords require Renters Insurance. They feel it is vital that a tenant’s personal belongings are covered. However, we believe that landlords should require renters insurance on any new lease or lease renewal. Why? Renters insurance doesn’t just protect tenants; it’s useful for landlords if they need to cover a tenant’s losses caused by someone else.
What Does Renters Insurance Cover?
As with any insurance, coverage depends on the policy taken out and the terms and conditions. Generally, renters insurance covers the following:
- Damages to personal property
- Liability for injuries
- Losses caused by theft
- Natural disasters
- Relocation expenses if the rental unit is uninhabitable
How Tenants Benefit from Renters Insurance
If you require your tenant to take out renters insurance, their first question might be why you don’t already have it. All legitimate landlords take out a Rental Dwelling Policy. However, the tenant may not realize that the landlords’ insurance covers the building’s structure and the damage caused. It won’t cover damage to the tenant’s personal property.
If there was a fire in the property, and neither the landlord nor the tenant was to blame, The landlord’s insurance would cover the damage to things like the walls, electricals, and structure—but none of the tenant’s possessions. However, renters insurance would cover the damage to everything the tenants own up to the policy’s limit.
Many Landlords Require Renters Insurance
Liability coverage is another reason why renters insurance is vital. Liability coverage protects tenants from claims of injury from people near or on the property. It can also protect the tenant from damage claims to other people’s property.
Also, it is worth reminding tenants that some renters’ insurance policies include living expenses coverage. This could help cover unexpected costs from staying in a hotel if the property is inhabitable because of the damages.
Other benefits of Ensuring Your Tenants Have Renters Insurance:
- Stolen property—Renters insurance covers damages or losses for stolen property. Without renters insurance, a tenant could sue you because you have to ensure the property has adequate security.
- Pets—Renters insurance lets you be a pet-friendly landlord. This fact makes it easier to attract tenants and reduce rental vacancies. Renters insurance that includes pet liability gives you peace of mind if your tenant has cats, dogs, or other pets.
- A sign of a responsible tenant—Landlords should thoroughly screen all potential tenants to ensure they are good renters. Credit reports and background checks provide a part of the screening information. Tenants willing to take out renters insurance generally show they are more dependable and committed to their responsibilities.
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