To most tenants, renters issuance is just another addition to their expenses, but this isn’t so. Renters insurance covers more than just monthly payments, it helps in many cases. A tenant’s personal belongings won’t be covered in a homeowner’s policy, therefore it is advisable for tenants to have renters insurance.
What is Renters Insurance?
Simply put, it is an insurance policy obtained by the tenant which covers the tenant’s personal property. As a property manager, it is advisable to ask tenants to obtain and carry renters insurance, as this protects the owner from risks. It shouldn’t be a big burned since it is affordable, about $15 – $20 monthly. Even though some cities frown at mandatory renters insurance requirements from home owners, it is ideal to recommend it and explain to them all that is involved with making it compulsory.
What Does It Cover?
Renters insurance covers several factors, and even though it benefits tenants the most, it may still be of benefit to landlords, directly or indirectly. With renters insurance, the following are covered:
- Personal Property
If your tenant’s belongings were stolen during a break in which isn’t your fault, they would want to replace them. With renters insurance, those items are covered, but they will have to cover the cost themselves if they don’t have renters insurance.
- Loss of Use
If your property was hit by a flood, storm fire or other natural disasters, you have to fix your property, and doing so means that your tenant will have to move out temporally, probably to a hotel. A renters insurance covers the cost of the hotel, but your tenant would have to foot the hotel bills if they don’t have renters insurance.
This one benefits landlords the most, because when a tenant is careless and cause some damages such as fire by leaving a cooking pot on the stove for longer hours, the tenant will be held responsible. In such cases, the landlord will likely sue the tenant since the security deposits probably won’t cover such damages. If the damage is caused by a covered incident, the insurance company will have to pay you for such damages provided the tenant has renters insurance.
- Medical Payments
If a guest gets injured, liability coverage also covers it. However, it doesn’t cover medical bills of the tenant.
- Third-Party Property Damage
Damages done to neighbors properties are common, and they may come after you if your tenant doesn’t have renters insurance to cover the cost.
You don’t know what situation your tenant may face tomorrow which may affect you. also, your property might get damaged either due to carelessness on the part of your tenant or it could be a natural disaster. From this, you can now see that a renters insurance will benefit both landlords and tenants, so it is highly recommended that your tenants carry renters insurance. They shouldn’t just carry it, you should endeavor to check if it is active, and make them know the value of it.