Insurance Money Matters
Why Landlords Should Require Renters InsuranceTuesday, February 12, 2013 Mary Anne Velasco
If you are going to rent out property, you should always require renters insurance. As a landlord, it is your responsibility to request this of your tenants. Renters insurance not only protects the tenant and their belongings, but it protects you as well. You want to make sure that your tenants have the insurance they need in case something unfortunate happens. This makes the insurance company liable for the repair or replacement costs, rather than you.
● Renters insurance covers personal property
Most renters insurance plans will cover the tenant's personal property. This generally includes damage, such as if a fire or flood was to occur, and it sometimes includes theft. It's very important that your tenants have this kind of protection, because it ensures that you do not have to foot the bill. You can be held liable if your tenant’s properties were to get damaged or stolen and they did not have renters insurance.
● Renters insurance can cover medical expenses
If someone were to get injured while on the property, you could be held liable as the landlord. Renters insurance provides the protection that you and your tenants need to live worry free. Medical bills are one of the many things that are generally covered under a renters insurance policy.
● Renters insurance provides liability protection
In order to live in your home comfortably, you need to know that you are protected against liability issues. If someone were to get injured inside your home or commit a crime, you shouldn't be held responsible for their actions. Renters insurance protects against these types of situations by providing liability protection for the tenant. Not only does this protect them, but it protects you as the landlord as well. This allows you to rent the property worry free, knowing that if worse came to worst, you would be covered and so would your tenants.
● Renters insurance is inexpensive
Perhaps one of the more significant reasons why landlords should require renters insurance is because it offers so much protection and it's inexpensive. Renters insurance companies charge very little for their policies, primarily because these plans are rarely needed. The likelihood that someone will break into the home and steal things, or that a natural disaster will occur, is very low. This means that the insurance companies collect money from tenants that will never actually use the plan, and it makes their business more profitable. They are able to offer a lower rate on insurance because of this and it makes renters insurance plans highly affordable.