Many tenants do not have their own renters insurance policy. Either they underestimate the value of the things they own or they assume the landlord’s policy will cover them. A landlords insurance does not protect a renters property or provide them with liability. By requiring renters to obtain their own insurance, landlords can protect their own interests.
Here are three reasons a landlord should consider requiring renters insurance:
- You can be protected from damage to your property
If there’s a covered loss, such as a fire, your landlord property policy would pay for the repairs to the building. However, if your tenant was cooking and caused the fire, the tenant would be responsible for the damage. If the tenant has a renters policy, they could have some coverage for this loss.
- You can reduce the risk of renters having pets on the premises.
As a property owner, if your tenant has a dog that causes injuries to someone on premises, you could be held liable for the claim. Requiring a renter to carry a renters insurance policy can help mitigate the risks of pets with dog-bite liability and property damage coverage.
- Protecting your own policy from large or multiple losses.
Insurance is vital in protecting your financial well-being from large, unexpected losses. But having frequent claims can cause your premium to increase and, in some cases, make it harder to obtain insurance. Requiring tenants to carry renters insurance may lower unnecessary claims against your policy that you could face if the tenant doesn’t have their own policy.
You should consider requiring your renters to provide proof of insurance along with the signed lease agreement. You may consider requiring tenants to list you as an additional interest on the tenant’s policy to make sure it stays in force with adequate coverage limits. To make sure you have the insurance protection you need, be sure to speak one of our agents about your coverage.
Source: Cincinnati Insurance Companies
