Here’s Why.
Liability Coverage.
A renter’s policy includes liability coverage which helps protect the tenant if they’re negligent and damage or injury occurs as a result. Medical bills may also be covered, and in the event of a lawsuit, the coverage will also help with legal fees.
Financial Stability.
A renter’s policy helps ensure that in the event of a loss, the tenant will have the financial means to mediate it. This is especially valuable with large losses such as a fire, or theft. Policy coverage includes “Loss of Use,” meaning if a loss occurs and the tenant cannot stay in the dwelling while repairs are done, this coverage will pay for their reasonable expenses such as temporary lodging, food, toiletries, and other necessary items while displaced. This helps to keep the tenant financially stable and likely able to return to the dwelling and continue paying rent, once repairs have been completed. Requiring renter’s insurance can also help tenants be responsible! For instance, renter’s policies typically include a deductible, requiring the tenant to pay a portion of any damage or loss. Knowing this, tenants may be encouraged to be more careful and respectful in their use of the property, which is a win-win for you both!
Peace of Mind.
Knowing that your tenant has renter’s insurance is reassuring! If a loss occurs, this extra level of security is in place, and suggests the likelihood of a liability claim falling on you from your tenant’s negligence is minimal.
As you can see, aside from protecting tenants, requiring renter’s insurance helps protect YOU and has other great benefits you may never have been aware of until now. And renter’s policies are typically cheap! When you make these policies mandatory in your leases, explain to your tenants how the protection benefits of renter’s insurance far outweighs the cost. Then have them call Hanckel-Citizens Insurance to get them set up with a policy that fits both their needs as a tenant, and yours as the property owner.
A clearer no-brainer, there never was!
