Renters insurance is great protection for not just the tenant but also the landlord. You may think that since you have home insurance, it would cover rented property as well but it might lead to conflicts with your insurance company and may have complications for you as well. Renters insurance can give the landlord the peace of mind that regardless of what happens inside the rented property, the tenants would have a cover that they can use.
There are a number of benefits of making renters insurance a necessary requirement in the lease agreement. This means that any tenant not having renters insurance would be in violation of the lease. You may think that putting such a clause in the lease may scare away many possible tenants since it would prove an extra burden on them. However, after seeing the benefits of renters insurance, you would realize that waiting for the tenant who has renters insurance or is ready to purchase it would be the right decision to make.
It Minimizes the Threat of a Lawsuit
Lawsuits become a probability in case something happens in the rented house. Whether it is the tenant who faces damage and wants the landlord to take responsibility or a guest in the house who gets injured and wants payment for damages from the landlord, you would be the one who will get in trouble. In the case that your insurance agrees to pay, you can be assured that the premium would only get higher after such an episode. If your tenant will have renters insurance, you would have nothing to worry about in such circumstances.
It Filters Out Dodgy Tenants
You won’t want tenants who are already broke and simply can’t afford a simple $20 per month renters insurance. If you ask for renters insurance and a tenant simply tells you that he/she won’t take it because it would be too huge a burden, it should serve as a red flag for you. It may either be that the tenant is basically broke and may find it hard to pay the rent on time or it may be that the tenant simply wants to get you involved in case of any problems inside the property. In any case, you would stay away from such tenants by making renters insurance necessary.
It Brings you Peace of Mind
Peace of mind is of so much value even though it has no worth on paper. The knowledge that you wouldn’t be responsible for paying in case of any damage to the tenant or the property during the tenancy can take a lot of burden off your shoulders.
At Fast Eviction Service, help on any of the issues discussed in this article is simply a click or phone call away. Email email@example.com or call our office at (800) 686-8686 to discuss your questions for a free evaluation of your case.
A Strong Lease Agreement Means A Strong Business
A rental or lease agreement is a legal binding contract between a landlord and a tenant that describes the rules to follow for each party in their relationship. Rental agreements could be long, they could be short, they could be nicely printed on legal paper, or they could be hand typed. Whatever your case may be, you as a landlord need to be sure that you cover the basics, and more. Read More...
Important Clauses In Your Lease
When you’re about to start renting your investment property, one of the first things on your list should be a well drafted lease. Choosing to go with a lawyer to help you draft the lease is an excellent idea since your attorney has experience in this area and will make sure you dot all your i’s and cross all your t’s. Read More...
What Are Your Rights If The Tenants Break Their Lease Agreements?
One of the basic aspects of a lease agreement is the length of the tenancy with the lease expiring once that period is over. However, there is more than one way that the lease agreement can end. A tenant can also break the lease by basically informing the landlord beforehand of their wish to leave the property before the agreed period. Read More...