so my property is almost ready to be rented. Should I require renters insurance and what is the purpose. Should I get my name on their policy. Why
@Brett Staples I require renters insurance for all of our tenants, and ask to be named additional interest or additional insured, this way you get notified if they decide to cancel.
I know that people think they dont need it, but after hurricane Irma and some of their things got damaged from water etc... they are thankful for the insurance. I also have experienced several kitchen fires over the last ten years and it was extremely helpful. There are so many things that can go wrong
Awesome I appreciate the reply but how does that affect you as a landlord
Check out this article about whether or not Massachusetts landlords can require that their tenants have insurance:
yes. you can require that they cover damage to the building not just their own stuff. this way if they are at fault for damage, their insurance pays the claim. This is 100% common where I am at.
great info, thanks all
As @Steve Nowak mentioned, it might not be legal in Massachusetts. Also worth considering is the type of neighborhood you are renting in. If it's a lower grade neighborhood, you might not be able to convince the tenants to incur the extra monthly expense.
The main reason why you want your tenants to get renters insurance is so they have liability coverage. If someone slips and falls and tries to sue, then the renters insurance liability coverage will cover that lawsuit rather than your liability on your policy. Your rates will go up drastically in the event of a liability claim. Not too mention you’ll also have the piece of mind in knowing your renters won’t have to pay out of pocket for their personal belongings in the event of a natural disaster.