Accidents happen. As a landlord, you will find that abundantly true. Through no fault of your own, or even your tenant’s, things will happen that will require some measure of financial remedy. Some property owner’s either provide insurance or build a certain amount into the rent. There are several valid reasons, whether you provide this or not, to require or strongly advise that renter’s insurance is needed.
Renter’s insurance, by definition, is protection against damage and/or destruction of tenant’s personal property. The reasons experts recommend that it be required of tenants is of benefit to the renter and the property owner. Some of those reasons are:
- The property owner’s insurance is built to resolve damages and issues with the building. It does not address damages to tenant property or expenses they may occur while damages are resolved.
- Some rental policies protect against loss of property away from the property in question. For example, if the tenant has suffered a loss of their vehicle (i.e., wreck, repairs) that will prevent them from paying their rent, renter’s insurance may aid in that situation.
- The renter may often receive discounts for having multiple types of insurance coverage.
- It’s relatively inexpensive. For a policy that provides $15,000 in property damage and $100,000 in liability, can cost as little as $200 per year. That’s nothing compared to the peace of mind gained in protection against potential disaster.
- When you require renter’s insurance, should a problem arise, there won’t any need to worry about the issues they may encounter. This will then put little to no strain on the landlord tenant relationship during an already stressful time.
If you, as the landlord, do not feel comfortable requiring it, for your protection, provide it. Before approving a rental application, some property management companies even require proof of insurance before the application can be approved. In a continued effort to follow Carod Propertie’s industry-leading advice, protect your investment. However you go about it, protecting the tenant and the landlord with insurance is a prudent expenditure for peace of mind!
