Why Your Tenants Should Have Rental Insurance

When you screen prospective tenants for your rental properties, do you suggest that they obtain renter’s insurance? Many landlords go beyond suggesting, and make it a condition of the lease—and for good reason. Renter’s insurance can protect you and your tenant.

Not only does renter’s insurance safeguard the value of your tenant’s property from theft or damage, but it also protects them from liability for accidental injuries or damages to the property of others. For example, if a tenant’s bathtub overflows, he or she would be liable for any water damages to the building and for any harm suffered by the neighbor below. With renter’s insurance, the tenant doesn’t have the worry or burden of paying for repairs or replacing damaged property.

While your landlord’s property insurance will typically cover your rental property in the event of a fire, it will not cover your tenants’ property. With renter’s insurance, tenants can get help with temporary housing, and replace their furniture, household goods, clothing and personal belongings. And if that fire were caused by a tenant’s negligence, renter’s insurance would cover the tenant if your insurance company demanded reimbursement of damages paid.

In addition, renter’s insurance can offer a layer of protection for landlords whenever visitors are on the property. A visiting adult or child could trip, fall or slip, resulting in injuries. When the tenant has renter’s insurance, their visitor can seek damages from the tenant’s insurance company, instead of yours.

Renter’s insurance is usually an affordable way to gain a great deal of peace of mind. At only $15 – $20 per month, most tenants who qualify for your rental property will find it reasonable. And if a tenant claims they can’t afford renter’s insurance, how does that make you feel about signing a lease?

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