If you’re managing properties, you do everything to keep the building and its tenants safe. However, your residents also need to do their part. And, that means they need their own renters insurance. Whether we like it or not, unfortunate events happen, from fires to floods. Tenants often assume they don’t need renters insurance for a few key reasons:
- They assume the landlord’s insurance covers them.
- They don’t think they have anything of value.
- They think it’s too expensive.
What many tenants don’t realize is that your building insurance does not cover them, and replacing all of your belongings, electronics and furniture can add up fast. Finally, renters insurance is a lot less expensive than what people may think.
Reasons to Offer Renters Insurance
It Increases Tenant Accountability
You don’t know what you don’t know, and tenants sometimes mistakenly believe they are covered under the landlord’s insurance. Requiring all tenants to have insurance as a condition of renting is a way to educate your tenants, open their eyes to the dangers of not having insurance, and insuring they are accountable for any damages they cause to their own unit or that of other tenants in the building.
It Reduces Legal Hassles
Renters without insurance are more likely to try claim some landlord responsibility and take you to court to try to replace damaged or destroyed belongings. Even if the cause of the damage has nothing to with the you or any defect in the building, there’s a chance the tenant might try anyway. A renters insurance policy changes that dynamic by ensuring that your tenants are covered and removing any potential litigation.
It Results in Higher Quality Tenants
Adding a required insurance clause to your leases may have the unexpected outcome of helping to sift out potentially bad tenants who aren’t a good fit. If you are renting an apartment for $1000 a month, but your tenant candidate doesn’t want to pay an extra $15-30 a month for insurance – that could be a sign that they either don’t understand the value, aren’t responsible tenants or perhaps, they potentially can’t afford the apartment.
Renters Insurance Benefits Your Tenants (and Reduces Your Risk)
Ultimately, renters insurance helps keep your residents safe. There are countless common mishaps that can happen, for instance, an overflowing tub that damages the neighbour’s unit, theft, fire or civil liability from an accidental injury. Should something happen, your tenant is taken care of. Without it, they would have to pay out of pocket, so insisting on renters insurance helps ensure financial stability in the unfortunately event that something does happen. In short, every multifamily property should make sure their residents are covered. It’s good for you, it’s good for the tenants.
How Property Vista Helps Renters and Landlords
Property Vista has teamed up with TenantSure to provide a built-in renters insurance program that is easy to join and provides broad coverage at a great price. It’s a win-win deal for renters and landlords. Tenants have an easy way to get affordable coverage that gives them peace of mind, and our portal makes it easy for landlords to enforce mandatory insurance either through TenantSure or the tenant’s choice of insurance. You’re able to fully view the insurance status of every one of your residents, allowing you to enforce mandatory adoption, and giving you and your investors peace of mind that properties are covered in the event of damage, accidents and emergencies. See our pricing and arrange a demo here.