Even if you have the best landlord insurance policy available, it is still essential that your tenants are covered. Not only will having a sound Renters Insurance policy benefit tenants, but it is also in the best interest of landlords. Let’s dive into why. Renters Insurance provides a full spectrum of coverage for many more common than you think occurrences. Here is a brief overview of what is covered and how it differs or supplements a landlord policy.
Renters Insurance covers the tenants’ personal property.
- In the instance of a robbery, smoke, fire, or storm, a landlord insurance policy will NEVER cover the tenants’ belongings. That means that the tenant will solely be responsible for replacing everything from clothing, furniture, computers, and phones themselves. Landlords should encourage their tenants to have full coverage for their items. Especially since, if the tenant is in a huge bind and cannot pay for their belongings, they are going to approach the landlord for payment.
Renters Insurance provides liability coverage.
- Let’s say the tenant’s child throws a baseball through the window or the tenant falls asleep in the tub and overflows it. Although accidents, both these scenarios would be seen as the tenant’s fault and, therefore, Renters Insurance would cover the costs of damage. Additionally, if the tenant has a guest injured on the property, Renters Insurance could cover associated medical costs. Liability coverage in Renters Insurance policies can supplement your landlord policy and, in many cases, be the first line of payments.
Renters Insurance provides loss of use coverage.
- If there is a natural disaster and the dwelling is no longer habitable, Renters Insurance will cover temporary housing for tenants. Rather than cover housing costs for tenants, most landlord insurance policies cover Loss of Income for a dwelling that cannot be rented out.
Renters Insurance provides third-party property damage.
- Let’s say this time the tenant’s child throws a baseball through the neighbor’s window or the tenant drives their car through the neighbor’s fence. Again, both incidents would be accidents, but the tenant would be at fault. Landlords can take comfort in knowing that Renters Insurance will supplement their landlord policies when the neighbors come for payments.
And the best news of all is Renters Insurance is very affordable. Lucas Hall, founder of Landlordology.com recommends landlords require tenants in the lease to get a minimum of $100,000 in liability coverage and $15,000 in personal property coverage. To learn more about the benefits of Renters Insurance visit Cozy.co. To learn more about landlord insurance, visit our Insurance Page.
Related: Full Guide to Landlord Insurance & Liability Coverage