October 29, 2019
Five Benefits of Requiring Tenants to Have Renter’s Insurance
Sometimes landlords waffle on whether or not to require their tenants to have renter’s insurance. Don’t. Insist on it. While not required, renter’s insurance benefits both the landlord and tenant. Landlords should require all tenants to have it as a term in the lease agreement and here’s why:
1. It Reminds Tenants of their Responsibilities
Many tenants don’t have insurance simply because they mistakenly believe they are covered under the landlord’s insurance. If your standard lease has a clause that outlines to tenants how their belongings are not covered by your insurance, it can open a lot of eyes.
2. It Ensures High Quality Tenants
Every landlord wants the highest quality tenants. Requiring renter’s insurance can go a long way in weeding out bad renters. If your potential renter says they either can’t afford insurance, or don’t need it, that’s a big red flag. Renter’s insurance is quite affordable, and any responsible person sees and understands the benefits of having it. It’s a clear indication of responsibility and the fact that they care about their belongings.
3. It Lessens Your Responsibility
Let’ say there has been a fire in a tenant’s apartment. The cause of the fire is completely unrelated to you as a landlord or the building’s physical structure. (Despite this, in some states you would be held responsible for relocation benefits to your tenant.) If your tenant doesn’t have insurance or a place to go, you might feel a responsibility for helping your tenant find a temporary place to stay while the unit is being repaired.
However, if your tenant has insurance, they don’t need to rely on your generosity. Their insurance would cover them for temporary lodging.
4. It Reduces Costly Lawsuits
Renters without insurance might be more prone to taking the landlord to court to try to replace damaged or destroyed belongings. Even if the cause of the damage has nothing to with the landlord or any defect in the building, there’s a chance the tenant might try anyway. Tenants with renter’s insurance (and their landlords) have peace of mind that the belongings will be replaced in the event of damage.
5. It Can Help Keep Premiums Stable
As a landlord, there’s a good chance that your insurance premiums can increase after a claim. More worryingly, your insurance could even be canceled instead of renewed as a result of too many claims. When your renter is required to have renter’s insurance that can cover all or a part of the loss, you reduce the possibility of your premiums going up.
How Property Vista Helps Ensure Renter’s Insurance
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.