Renter’s Insurance Basics
Hello all! How are you? I am doing just fine. I want to write a blurb about why renter’s insurance is so important and why every landlord should require tenants to keep a current policy!
Renter’s insurance doesn’t only protect the renter. Let’s say a tenant lights the kitchen on fire, causes $50,000 worth of damage. They admit to it and feel obligated to pay (obviously). Chances are, most renters will not have a reserve of $50,000 to compensate you for fixing the damage. You could sue them, but if they don’t have the funds how will you collect the judgement? In this instance, renters insurance would be protecting the OWNER. Or, what if a tenants house gets broken into and their belongings get stolen. They get emotional, get a little crazy and then end up blaming you! Chances are that wouldn’t happen if they had a nice, hefty renter’s insurance policy that would make them whole again!
Tip: Require renters insurance on the lease. If the policy lapses, its another thing you can evict the tenants on. This can be beneficial especially if you are wanting them out!
One other thing to consider: what if a tenant’s dog bites someone? Then the tenant gets sued and can’t pay the suit off. Who do you think the attorney will go after next? Or, a tenant runs a day care illegally in your rental property and one of the tenant’s clients claims assault against your tenant. If the tenant can’t pay, who’s the next “deep pocket” person will they go after?
Here is a link to great policies:
There is a lot of bad information on the internet out there, all I’d say is: require renters insurance. Call TGN Property Management day for any questions you may have! We manage all residential and commercial types as well as Air BNB vacation rentals! Call today 310 623 2704