As a landlord, your rental property is probably one of your most important investments. Whether it is a stream of current income or a nest egg for retirement, you always want to make sure your investment is protected.
One element of doing so is making sure your tenants have renter’s insurance. This coverage is a must for any landlord for several reasons. Here are a few.
1. It covers your tenant’s damage
If you have a tenant who badly damages your building, you could be stuck with the bill. Damage could happen with something like a fire or even a party that gets out of control. If your tenant caused the damage, their renter’s insurance could cover your deductible on your property insurance. In addition, if there was a basement flood or some other type of mishap, your tenants’ property could be damaged, and would be covered by their renter’s insurance policy.
2. It’s additional coverage in the case of an accident
If someone slips and falls in a tenant’s apartment, the medical costs, court costs, and pain and suffering costs can add up quickly. If you tenant has renter’s insurance then their insurance company will be brought into play and may cover much of the cost. Without the tenant having insurance then any party bringing a suit may see you, the landlord, as their best shot at compensation.
3. It covers your tenant’s belongings
Renter’s insurance will cover your tenants’ belongings in the case of theft. First, this is beneficial because a major theft could make it difficult for a tenant to pay rent, as they may want to use their money to replace their lost property rather than pay you. In some cases, a tenant could even pursue the landlord for losses due to lack of security.
Requiring renter’s insurance in your lease agreement is a good idea to give you more peace of mind. Renter’s policies are very affordable. There are many types of policies, and many can even be bundled with auto insurance to save money.
If you would like to know more about renter’s insurance and how to insure your rental property, call John B Wright on 800-224-6693 or fill out the contact form on our website here.
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