Why Landlords Should Require Renters Insurance

More landlords are requiring that renters obtain and pay for a renters’ insurance policy. The benefits outweigh the nominal cost that is less than $200 annually.
Here’s how it works…

What Renters Insurance Covers

Personal items: If TVs, computers, clothing, etc. are damaged due to fire, theft, vandalism, or water renters’ insurance will likely reimburse the renter for the loss.

Liability: Although your own landlord’s liability insurance will cover the cost up to the limits of the policy if someone gets hurt on your property or sues you, it is advantageous to you that the renter’s insurance cover any personal injury or possible property damage the renter may cause. The standard limit on a renters policy is a minimum of $100,000.

Loss of use: If the renter needs to move out after a covered disaster, the policy will most likely cover the cost of temporary relocation, including hotel and meals, while the property is being repaired.

What Renter’s Insurance Does Not Cover

Earthquake and flood damage: This is usually covered by the landlord’s policy; however, it may also be available under the renter’s policy.

Roommates’ belongings: Renter’s insurance typically cannot be shared or cover more than one individual.

Personal: property value: It limits the coverage for jewelry, art, and other valuables. Your renter can buy a separate policy for these higher priced items.

Not all insurance carriers are the same, so be sure to have your renters read their policy carefully.

I hope this was helpful. Feel free to reply with any questions you may have or call me at 949-209-9494 or visit GenuineManaged.com to learn more about our residential and commercial property management services.

With best regards,
Marcel Ford
Genuine Property Management

* We are not attorneys, financial advisors, nor tax experts and the information above we deem to be accurate but is not guaranteed.