Why You Should Always Ask Renters For Insurance
First and foremost, if you plan to manage a rental property, you should make it a priority to have property insurance. Having property protection coverage ensures that your property, and your investment, are safe in case there is some kind of damage to the property.
Depending on the coverage, property insurance provides a protective blanket on the property itself and most do not consider the renter’s personal property or only certain liabilities.
So, if for example, someone breaks into the property when the tenants aren’t home, the insurance will most likely only have to take care of broken windows and locks or any other collateral damage to the house, apartment, or complex that is your rental property.
Unfortunately, any stolen items from the tenants will be impossible to replace through the landlord’s insurance. Most renter’s insurance policies do not consider any renter’s personal belongings in their policies.
Renter’s Insurance Benefits
In a nutshell, having insurance coverage on the property will protect everything owned by the landlord, and the landlord only. If there is a need for legal advice or any other professional services, expenses will only be covered for the landlord or for property management.
The only way to fully cover tenants’ belongings and/or any kind of liability is by asking for them to have their own insurance protection.
Should tenants have to temporarily move to a hotel due to an unforeseen event, such as a gas leak or even a fire, all expenses are covered. Otherwise, tenants will have to pay for everything from their own pockets.
Medical Expenses and Liability Coverage on Damage
Medical bills can easily break the bank if you don’t have insurance. In case of an accident at home, tenants will be able to receive the medical attention they need without worrying about how much they will have to pay. This will not only cover tenants, but also any other person involved in the accident. So, if there’s somebody else, other than the tenants that need the medical attention, insurance protection will guarantee it, even if the tenants themselves caused it.
Having renter’s insurance reduces the risk of a lawsuit since uninsured tenants are more likely to turn to legal advice and even legal action in the unfortunate case of an issue within the property, renter’s insurance protection practically eliminates any kind of possible liability in this regard.
It is estimated that 68% of households in America own a pet, so that means that being pet-friendly will make your property more compelling to the average renter. Most landlords struggle to take the leap to pet-friendliness since pets usually come with additional wear and tear to the property resulting in higher maintenance and upkeep expenses. Additionally, it is not unheard of needing to replace chewed doors or scratched furniture, so this is the only way you can have peace of mind when tenants have pets. By asking for renter’s insurance, management can at last accept pets in their properties, knowing that any damage caused by the animal will be covered by the policies.
All landlords should require renter’s insurance, ask for legal advice on how to incorporate this requirement into the lease contract. Professional advice will also help you choose the best option for your property. There are multiple options that might not be the best one for you, so make sure to get the right one for your tenants.
Filed under: Landlord Tips