November 20, 2018
5 Things You Need to Know About Renters Insurance
From a fire to a break-in, unexpected and unpleasant events happen—whether we like it or not. Without renters insurance, a tenant may not have the money to replace their lost electronics, furniture or other personal belongings. However, many tenants don’t have this coverage.
Here are five fast facts every tenant needs to know about renters insurance.
1. The Landlord’s Insurance Doesn’t Cover Them
Often, a tenant will assume that the landlord/property insurance policy covers them in the event of theft or a fire, flood, or power outage that damages personal property. It’s usually only when something goes wrong that they realize they are not covered.
It’s not uncommon to hear stories about the tenant who thought the landlord’s insurance would cover having their furniture and other belongings replaced after a fire. Landlords need to explain this to their tenants.
2. The Roommate’s Insurance Doesn’t Cover Them
Many renters mistakenly believe that if their roommate has renters insurance that their belongings are covered as well. Unless the roommate’s name has been added to the policy, renters insurance only covers the belongings of the policy holder. It really is in everyone’s best interest to have their own policy and coverage.
3. It’s Not Expensive
Many renters shy away from insurance thinking that it is expensive. But nothing could be further from the truth. Renters insurance if less expensive than homeowners insurance. Coverage for theft, fire and natural disasters can range between $150-$300 a year. That’s less than a cup of coffee a day. Also, there may be additional cost reduction for having fire or burglary alarms.
Tenants may not think they need renter’s insurance, but you need to ask them to add up the cost of every item in their home. Then, the renter may make feel differently when they tally up the replacement costs of all of their clothing, furniture, electronics and other household goods.
4. It’s Also About Liability Protection
Beyond a fire or flood, the renter must consider how they would pay for any personal liability. The tenant needs to imagine what would happen if someone were to slip and fall in their home, and then sued them for thousands in medical expenses and lost income. There are a ton of common mishaps that can happen, like an overflowing tub that damages the neighbor’s belongings or a dog that bites the postal carrier. (Note: Certain “aggressive” dog breeds may increase the price of insurance.)
Your tenant should understand they are at risk and liable for accidents for which they are negligent. Most policies include up to $100,000 in liability insurance.
5. A Renters Insurance Lease Addendum is Common
More and more, tenants are required to have insurance. As a landlord, obliging your residents to carry their own renters insurance is an essential part of managing risk. This requirement means that their insurance covers any loss and protects you.
Smart landlords insist upon coverage with a renters insurance lease addendum. Get your lawyer to phrase a paragraph that requires the tenant to have insurance. When you go over the lease, make sure they initial this paragraph so there is no misunderstanding.
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 adoption. See pricing for our property management solution and arrange a demo.