As a landlord, you can’t foresee all the situations that lead to damage. Properties can get trashed, things stolen, and tenants injured, and Mother Nature is just waiting for you to shrug and say, “Hey, what are the odds?” before unleashing an epic hurricane on you. With that in mind, you can’t ignore the importance of having renter’s insurance without asking for trouble.
Renter’s insurance is in the best interest of your tenants, too, so don’t be afraid to insist upon it. You can require that tenants have a renter’s insurance policy by writing into the lease that the lessee has to provide proof of a policy within 14 days of the start date. Here’s how a renter’s insurance policy can help both landlord and tenant:
Property Damage
A renter’s insurance policy can head off any disputes if the tenant’s belongings are damaged on the property. The tenant will know that the insurance company, not you, can reimburse them for damaged or stolen items. Those costs can easily amount to thousands, and neither you nor your tenant needs that unexpected expense.
Relocation Costs
Damage of property and possession results in other costs, too. Some policies will pay for temporary housing in the event of a fire or natural disaster. Otherwise, tenants are on their own and none too happy about it.
Liability for Injuries
Certain types of bodily injury are covered in a renter’s insurance policy, which will reduce your liability in legal claims the tenant is hurt. If someone else is injured on the property due to the tenant’s carelessness, insurance will protect the tenant from personal liability.
Pet Consequences
You can afford to be pet-friendlier if you know an insurance policy is covering any property damages or injuries they might cause to others. However, any damage to your property may not be covered, so be clear on the details.
When a renter has an insurance policy, it means there will be fewer claims on your owner’s policy, less chance that your premiums will increase, and less reason to raise the rent to pay for it. By being clear on the importance of having renter’s insurance, you can ensure that both you and your tenant will protect the property.
R. Russell Properties has been managing rental properties in Orlando, Florida, for more than 40 years, and we can advise you on insurance and any other questions you might have. Contact us so that we can take the day-to-day worry out of being a landlord.
