Almost all homeowners purchase a homeowner’s insurance policy. But when it comes to renters, not even half of them opt for a renter’s insurance policy. This is a very good protection of your tenants against any liability they have for the damage of property or their own belongings. Most tenants do not think seriously about this policy as they believe that the landlord policy you have is enough to protect them. However, this is not the case in most instances.
Coverage of a renter’s insurance policy
A renter’s insurance policy covers many kinds of damages and losses. They are protected in case of a burglary, theft, or even a fire. In fact, such a policy also provides cover against damage caused by negligence of a ten ant which can be very handy in some instances. If this is the case and when a renter’s insurance policy costs only a few dollars per month, why aren’t more and more tenants buying this policy? This because of the misconception among the tenants that insurance is the responsibility of the landlord and they do not need to think about it. What they do not realize is the fact that a landlord is not required to replace any damage caused to their belongings in case of a fire or theft.
This is the reason why it is in the own interest of landlords to educate their tenants about the benefits of a renter’s insurance policy. They need to convince their tenants about the usefulness of such a policy that also covers damage to the property of the tenants in addition to the damage to the property of the landlord.
Another reason why tenants avoid this discussion is because they feel that renter’s insurance policy is expensive, and it will create a burden on their shoulders. You can tell your tenants that there are renter’s insurance policies that cost as little as $10 per month. The premium of a renter’s insurance policy depends upon the kind of cover you want. You can easily opt for deductibles to reduce the cost f the premium of a renter’s insurance policy. As a landlord, you can convince your tenants to opt for a renter’s insurance policy that will cost them as little as a few cups of coffee at a restaurant or a movie date with their friend. Tell them that they can enjoy total peace of mind by paying a small amount of fee for such an insurance policy.
Reasons to give to your tenants in favor of a renter’s insurance policy
* They are protected in case of a fire or a break in
* This policy will cover them in case their pet bites a boy or girl inside the property
* Tenants are protected in case an injury takes place to a guest during a party on account of their action
* If a fire makes the property unlivable, it is the renter’s insurance policy that helps the tenant in finding a new home for himself
You can also make sure your renters have a renter’s insurance policy by making it a requirement in the lease agreement that you sign with your tenants. By making it a condition for being eligible to live in your property, you can make all your tenants have this valuable policy. You should check on from time to time that your tenants pay the premium of this policy so that it remains active. You can do this form your property management software. Your tenants can also purchase their renter’s insurance policy directly from this software.
By getting a renter’s insurance policy for your tenants, you can make them feel more confident and safe form accidental losses in your property.
If you’d like to talk more about property management, or you need help with Everest Property Management, please contact us at Everest Realty.
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As a top producing Realtor and Property Manager; Terry specializes in sales, extensive construction homes, rentals, REO’s, short sales, and all aspects of Real Estate. After graduating the University of Michigan with a master in MBA, Terry continued his endeavor and now has over 15+ years of experience in the Real Estate world. If there is anything that has to do with Real Estate and sales, you can always be sure of Terry to provide important, specialized knowledge.
