5 Reasons Renters Insurance Helps The Property Owner Too

Zillow had a piece out earlier this week: Smart Landlords Require Renters Insurance that pointed out a number of good reasons why you should require your residents to have renters insurance:

• Liability coverage if resident's guests injure themselves on your property.
• To protect against tenant-induced damage. If an unattended stove causes a fire, renter’s insurance could cover the damages instead of your own policy.
• If there’s major damage from a flood or fire and your residents have lost personal property, need to store belongings, or need a temporary place to stay , all of those costs will be covered under their renters insurance plan.
• If there are damages after move-out, you can go after the renters insurance to recover your losses instead of entangling yourself in a lengthy tenant dispute.
• Requiring renters insurance can reduce your insurance premium.

Typical renters insurance runs about $15 a month and the residents belongings are covered both in the unit and in their car too. They also are protected by the first three points above so it's a win-win.

Just make sure that every resident is required to carry it by putting it in the lease and have the property named as an additional insured so that you will be notified if there's a cancellation or a renewal.

Good hunting-