As a property owner, there is no doubt that you want to secure your investment by purchasing the necessary insurance on your own behalf. There is a myriad of things that could go wrong that you would be held liable for otherwise. However, what about being held liable for something that occurred in one of your units that a tenant is at fault? Even if no one plays the blame game, can you guarantee rent will
be collected if your tenant is sued for everything they are worth? The best way to ensure a little peace of mind is to require your tenants to have renter’s insurance. Here are a few reasons why it is important to make renters insurance apart of your lease agreement.
A Little Bit Goes A Long Way
The great thing about renter’s insurance is that for a low cost, property and liability will be covered in the event of an accident or occurrence. Renter’s insurance covers perils like fire, explosion, lightning, and theft. If someone is hurt in a tenant’s unit, renter’s insurance can help cover the cost of bodily injury or property damage while in the unit. In many cases, renter’s insurance can be added to an existing personal auto policy.
See Where They Are Financially
If your potential tenants are finding it hard to grasp the concept of required renter’s insurance, it may be time to reconsider the tenant. Renter’s insurance is a security blanket for both parties to aid in the event of loss or injury. This low-cost insurance should not make or break the budget of a renter. If a tenant cannot handle a small change in the monotony, can they afford to rent your unit?
Did you know that the renter’s insurance policy of your tenant can cover your policy’s deductible? In the unfortunate event that a tenant damages your building, your policy may cover the damage, but you will have to foot the bill for the deductible if your tenant has no insurance. Although any accidental
damage can be an inconvenience, the benefit of a covered deductible can help to ease the blow.