While most states don’t require landlords to have mandatory renter’s insurance for tenants, this insurance is important coverage and is something that landlords should consider.
In many cases, a renter’s insurance policy can benefit landlords just as much as the tenants. Renter’s insurance is generally inexpensive, and its benefits far outweigh the costs.
Here are just a few ways that a landlord can benefit from requiring tenants to have renter’s insurance.
If your tenant doesn't have renter’s insurance, and an accident occurs on your property, you could be held liable –even if the accident wasn't directly your fault. Renter’s insurance helps to provide protection that would compensate the injured party; reducing the chances of the injured bringing a lawsuit against you.
Help With Lawsuit Prevention
Since many tenants don’t know the value, or importance of renter’s insurance, many will opt out. Some tenants aren't even aware that renter’s insurance exists. To help protect yourself as a landlord, and your tenants as well –it may be beneficial to require renter’s insurance for your tenants. With renter’s insurance, your tenant will be compensated if their belongings are damaged or destroyed. Compensation also means that a tenant will be less likely to bring a lawsuit.
Provides Cleanup Coverage
Some renter’s insurance policies provide coverage in case the landlord needs to have damaged items removed from the property. Without renter’s insurance, if the house is flooded or damaged in a fire, the landlord may be left with a house full of destroyed furniture. Renter’s insurance makes things easier for the landlord, providing coverage for removal and disposal of damaged items.
Provides Peace of Mind
Requiring a renter’s insurance policy can help to give you peace of mind. It lets you know that your tenants are covered in case of loss –meaning you won’t have to worry about if their financial loss will affect their ability to pay rent.
Be sure to talk with your insurance agent about renter’s insurance. Find out how requiring tenants to have renter’s insurance can protect you as a landlord, and see how affordable this valuable coverage is.