PROPERTY MANAGEMENT BLOG

Recently at Complete Landlord Solutions, one of our tenants had a garage fire. Luckily, the owner of the property was covered through insurance and the tenant was as well. We require all our tenants to obtain and hold insurance throughout the term of the lease. Today, we’re sharing four good reasons to have renter’s insurance.

Why Get Renter’s Insurance: It’s Affordable

Renter’s insurance is extremely affordable. The national average is around $187 a year for a policy, and that comes out to less than $16 per month. There’s no reason not to have it. The coverage is cheap and worth every penny.

What Does Renter’s Insurance Cover?

Renter’s insurance covers all loss of personal property. If there’s a fire, or a lightning strike that takes out a television or a computer, or a rain storm that causes a roof leak, your personal property is covered. Whether you suffer a loss due to snow, ice, theft, or vandalism, your damage is covered. A renter’s insurance policy will cover all your personal possessions.

Landlord Requirements

We do require renter’s insurance, and many landlords and property managers will need tenants to have it before moving in. Proof of rental insurance could be a requirement of the lease. As landlords and owners, we will hold insurance that only covers the building. That insurance does not cover a tenant’s personal possessions in the property. If you don’t have renter’s insurance and there’s a leak that damages your electronics, the owner will cover the structure, but not your property. Rental insurance does cover it. If you’re a landlord looking for a property management company, it’s a good idea to ask if they require tenants to have this policy in place.

How Does Renter’s Insurance Work for Liability?

A renter’s insurance policy also provides liability coverage. If someone is injured in your home, that will be covered under your policy. It can also help cover tenants for any damage they might cause. For example, if there’s a fire that the tenant caused, the renter’s insurance will cover it.