Encouraging Renter’s Insurance for Your Tenants

It’s a tough time for renters and landlords. Many renters have lost their jobs due to the Coronavirus lockdown. Temporary holds on evictions have helped renters for a little while, but landlords, especially those with only a few properties, are hurting too.

Without rent income, their investment just doesn’t work. It’s best if landlords and renters can work together to get through this crisis. One basic way to reduce some problems for both is to encourage renter’s insurance.

The benefits of renter’s insurance will help ease even further hardship if a natural disaster or theft occurs.

The Many Benefits of Renter’s Insurance

The benefits of renter’s insurance for tenants might be a little easier to understand, but there are benefits to both renters and landlords.

It Protects Renters’ Stuff

This is the most important aspect. Having renter’s insurance covers the cost of the renter’s personal items in the case of theft, natural disaster, or fire. Many people assume that the property owner is the only one who needs insurance, but their insurance only covers the building itself.

Any damage or theft to the renter’s property, such as expensive TVs, computers, textbooks, or furniture will only be covered if the renter has specific renter’s insurance. Only about half of tenants in the United States have this insurance in place.

Even if your apartment is in a good location, there is still plenty of reason to get renter’s insurance. Your personal property is at least partially covered anywhere it is, not just at home.

It’s Very Reasonably Priced

Sure, the chances that your renters will need to rely on your renters’ insurance are relatively low, but so are the rates. Often you can find renter’s insurance for between $15-17 a month, which is affordable for most people.

It’s worth the small cost per month to cover thousands of dollars’ worth of your renters’ personal belongings if they’re ruined or stolen. The deductible is fairly low, too, at about $500-$2,000. This means if someone steals a TV and computer, it’s well worth it to have the insurance to replace them.

Renters shouldn’t underestimate how much they’d have to spend to replace everything they own and keep in their rented space. The coverage includes anything in the renter’s possession at the moment, including items that aren’t theirs.

It Covers Living Expenses in an Emergency

If there is a fire, natural disaster, break-in, or anything else that renders your living space unlivable, the owner’s insurance will pay for the building, but not your living expenses as you find temporary housing. However, if you have renter’s insurance, it covers this for you.

While it still is frustrating to lose personal items and have to move, you will have one less thing to worry about since your insurance will cover a hotel or other temporary shelter.

It Covers Injuries

Renter’s insurance not only covers your possessions, but also your liability in case someone gets injured at your place. Renter’s insurance will often pay medical bills and any legal costs if you end up being sued for an injury to someone else.

Typically, it also covers things like dog bites or any damage a guest or your kids may cause to property or people. In other words, it covers pretty much anything that the owner’s insurance doesn’t.

It Helps Landlords Too

So far, we’ve only talked about why renters would benefit from having renter’s insurance, but what about landlords? It indirectly benefits them, as well. As mentioned above, this is a particularly stressful time for relationships between tenants and landlords, which is never easy anyway.

So, how does renter’s insurance help? In the case a renter’s items are stolen or they need to make any claim on their renter’s insurance, the easier it goes for them, the fewer problems they will raise with you.

The happier they are the greater the chance they’ll continue to pay rent as scheduled. The less worried tenants are about replacing their personal property the less of a chance they will seek legal action against the landlord.

There are times when a tenant’s renter’s insurance will make a claim and prevent the landlord from having to involve their insurance. For example, if there is an injury. If the tenant utilizes their renter’s insurance, there is likely no need to get involved for the landlord.

The landlord often has much higher deductibles in place, so the less they need to use their policy, the better. Of course, the less either tenant or landlord has to pay in fees means the landlord doesn’t have to pass on extra costs to the tenant in the form of rent increases. So, it’s a win-win.

Encouraging (or even requiring) your tenants to purchase renter’s insurance gives both the landlord and tenant peace of mind in case of an emergency. It’s a strategic decision that benefits both parties.

Learn More

If you would like more information about the benefits of renter’s insurance for landlords and tenants, please contact us today. Our experienced team is ready to help. We specialize in property management and can help you navigate this tough time for landlords and tenants.

Please check out our website to learn more about the ways we can help landlords be successful. Encouraging renters to have renter’s insurance is just the beginning. Let us help manage your property so that it lives up to its full potential.