Renters Insurance for 3 to 9 month rentals?

Question

I'm a rookie, so please be kind!

I have a medium term rental ( 3 month minimum as required by my HOA) I'm right next to a Level I and Level II hospital and I have my first pair of traveling nurses moving in at the end of the week, YAY! I have landlord insurance and after discussions with my agent, I believe I have the appropriate coverage for owning the unit and being a landlord.

On my check list that I provided them, they said no other rental requires them to provide renters insurance, what is your guys experience with requiring renters insurance of tenants who stay for 3-9 months? They got coverage and sent me a screen shot of it and that it's active, but how do I know that they aren't going to turn around and cancel it?

Allen Duan · Answer

We don't require renter's insurance for our MTRs and I don't think it's common to require it. There's much less personal belongings in the home since you're furnishing it and providing most of the household items they need. What would you want them to cover with a policy of their own?

Jamie Banks · Answer

Congrats on your first booking!

We have 3 "layers" of insurance for our MTR business:

1. Landlord insurance that treats 30+ day stays as a long term rental

2. Guest damage protection that's offered through our CRM which protects the furniture in our properties + we collect a security deposit.

3. An umbrella policy for liability insurance. I have a MTR property management company so this may be overkill for solo operators.

John Mocker · Answer

Jenny,

For the Landlord, Renters coverage by your tenants is important as it provides Liability for the Tenants.  If a tenant causes damage or causes injury and does not have a Renters policy do you think they would have the resources to pay for the damage or injury.  Also, if someone is injured on your property due to the negligence of the tenant and they have no coverage/assets, who do you think the Attorney will sue?

For the tenant a renters Insurance policy is important for several reasons:

1. protects their belongings against theft, fire, wind, etc.

2. Provides coverage for their living expenses if one of those losses damages the unit and they can not live there (Hotel, meals, laundry, etc.

3. Liability coverage for an injury or damage they cause

Joey Banasihan · Answer

@Jenny Milu - it really comes down to your threshhold of risk and the type of experience you are providing. I highly advise MTR's to obtain insurance but do not require, if they choose not to I have have them sign an addendum stating that opted out of having it. This way I am protected. I also have an umbrella policy via liability for anything else around furinuture, natural causes, etc.

I also work with insurance brokers by sending MTR tenants referrals that work within their contract and have them on a temporay contract which comes to a small a mount everymonth. And I also try to educate them around what it means to have renters insurance and what it means to not have it. This is all in my Property Handbook I send them after lease is signed; I have found when I give them agency and education, they can make the best choice for themselves. Hope this helps!

Jenny Milu · Answer

You all are amazing and have provided great points! As a renter, I've always assumed the need for it, but never really thought of the purpose. I suppose since I'm new to the game, I assumed their policy would kick in and provide coverage should extensive damage be done. A great point was made regarding the tenants having a lot to cover.

All great points, thank you!

Jenny Milu · Answer

@Joey Banasihan SO HEPLFUL! What a great point and food for thought regarding risk tolerance! Thank you!

Michael Smythe · Answer

Renters Insurance really only covers tenant personal possessions.

LTR landlords typically require it as just another level of protection to avoid tenant lawsuits when backups, floods, etc. ruin tenant possessions.

If you are providing a fully-furnished home, all they are bringing are clothes and personal items. So, why would they care about or want the additional expense of Renters Insurance?

Conner Olsen · Answer

I use STR insurance from Steadily

Ron Brady · Answer

We carry a standard landlord policy

Jenny Milu · Answer

@Ron Brady @Conner Olsen Thank you both for your input! Do you carry a standard Landlord policy or any additional or specific coverage if you don't require the renters insurance?

Renters Insurance for 3 to 9 month rentals?

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