As a landlord, you have a lot to worry about during the course of any given month. From collecting rent to making the necessary repairs inside of properties, you will be required to take care of all sorts of tasks for your tenants. However, there is one thing you should not have to worry about if you are a landlord—the safety and security of your tenants’ possessions.
Your property insurance doesn’t extend to your tenants possessions – nor should it, as it’s not your property – but should you require your tenants to carry renter’s insurance?
There are several reasons why you may want to require your tenants have insurance. For starters, renter’s insurance often includes liability coverage of its own, which can reduce your landlord insurance policy costs. This can, in turn, mean that you can keep rents more manageable and offer a more appealing rental to prospective tenants.
Renter’s insurance is also a smart idea for the renter as well. Programs are very affordable – often totaling about the cost of a pizza per month or less – and renters insurance covers tenants’ possessions in the event of a theft, fire or other incident at the property, notes Apartments.com. Many tenants often assume that their possessions are covered by a landlord’s insurance policy, which can create conflict later if something were to happen to them.
By requiring tenants carry a renter’s insurance policy, you can alleviate problems and make sure that all parties are protected from anything that occurs at the property. You can also check with your existing insurance provider to see if you can offer a more affordable rate for tenants through your existing agency.
There are some legalities that you will need to consider before requiring your tenants to seek renters insurance policies, including on the proper way to include requirements in lease agreements and what your rights are under the law. Aaron Cox Law can sit down with you and explain your rights as a landlord and help you decide on how best to speak with tenants about renters insurance. Call us at 734-287-3664 today to learn more about the services we provide for both landlords and tenants.