Why You Should Be Insisting That Your Tenants Have Renters Insurance

Having a rental property can help bring you in some extra income, but it also comes with its share of stresses and complications. The most important part of being a landlord is being able to lease to responsible renters that will give you a minimum amount of trouble.

Landlords want to protect their investment and make sure that their property remains in great condition no matter who is living in the space. As a landlord, you will be taking on plenty of extra responsibilities, one of which will be vetting potential tenants. The application and interview process can take time.

One of the most important requirements or questions that you should be asking potential tenants is about renter’s insurance. Insurance policies like the ones available to renters through Allstate can help protect your tenants, your property and your wallet.

Making renter’s insurance a standard requirement in your lease agreement can help you to get some peace of mind as a landlord and help you to protect your investment. Here’s why you should be insisting that your renters have an insurance policy before they move in to your rental property.

Theft Protection

When a home invasion happens, your tenants could stand to lose a lot of their valuable possessions. Even though their dwelling is essentially your property, unless they have a renter’s policy they will have no protection for their personal items.

Renter’s insurance gives your tenants protection on everything inside their home and some things outside. For example, if a bike, barbecue or lawn mower is stolen on the property, the loss could be covered under the policy.

Damage of Inquiry To a Guest

Your tenants are bound to have company over on occasion. A renter’s policy will protect them and you in case their guest becomes injured on the property. A policy can help eliminate the liability issue that could cause a lawsuit. The policy will cover any damages caused by a guest or pay for any costs of injury that occurred while they were on the premises.

Personal Property

In cases where your tenants’ personal property is damaged due to storms or structural damage, a renter’s insurance policy will protect their belongings. When your tenants hold the right coverage it will protect you as a landlord from conflicts over responsibility for damaged or ruined possessions.

Emergency Funds

When damage to the property occurs like flooding, fire or storm damage, a renter’s insurance policy will help to pay for temporary housing for your tenant. If the property is deemed to be unliveable, your tenants will be compensated for the costs of housing until repairs can be made.

Conclusion

As a landlord there are many things to consider before renting your property to a new tenant. Good credit, rental history and regular employment are all important things to be considered. To protect yourself and your new tenants from conflict, you should be insisting that they invest in an affordable renter’s insurance policy