Why You Should Require Renters Insurance

Landlord insurance is usually the first step to renting out your home. But I also frequently suggest requiring renters insurance, too, since your property is still vulnerable to some liabilities. Renters insurance betters your property’s coverage and lowers your costs without increasing your expenses. Below, I’ve listed several common questions about renters insurance that I come across.

How does having my renters’ belongings covered affect me?

Renters insurance actually does more than just that. If a guest injures themselves while on your property, renters insurance includes a liability coverage. Also, rather than nagging at past renters to pay for damage done to the property, this insurance will recover your losses for you after move-out.

Can I actually make this insurance mandatory for renters?

As long as you require it of all your residents, making coverage a required aspect of your rental is perfectly legal, and highly encouraged. It should be included as a stipulation in the rental contract.

How are my costs lowered using this coverage?

This insurance acts as a safety net in case of an emergency: covering any major damage from an apartment flood or fire as well especially if your renters have lost belongings, need to store them, or need a temporary place to stay. Your premium stays lower because your claims on your landlord insurance is reduced and renters insurance protects you from costly legal fees.

Can my renters afford this insurance?

On average, renters insurance costs around $15 a month. And they will be much more likely to agree when you explain that not only does it cover their personal property within the home, but it covers the loss of property in their car or while traveling.

How can I be sure renters maintain their policy?

Sometimes, a renter may cancel their policy after you’ve verified their purchase. Requesting to list the insurance as an Additional Insured on the policy will allow you to receive notifications regarding a cancellation or renewal.

And while your local Realtor like myself can help clear up any questions you may have about renters insurance, consulting an attorney to pinpoint the legal aspects of the policy can help you better understand the insurance and its limitations.

Article Citation: Chan, Jennifer. (April 13, 2015). “Smart landlords require renters insurance.” Zillow for Pros Blog. Retrieved May 31, 2015 from: https://www.zillow.com/blog/pro/be-smart-require-renters-insurance-115037/?utm_source=email&utm_medium=email&utm_campaign=emm-0415_renterinsurance-0416-text.
Picture Citation: https://consumeraffairs.global.ssl.fastly.net/files/cache/news/rental_agreement_1_medium