Landlords take steps to protect their property. The insurance policy on the rental property generally covers the building itself. It is renters insurance that can protect the tenant’s belongings and provide liability coverage for covered events related to injury or property damage. Because of the additional protection for landlords and tenants, landlords should require renters insurance.
Landlords Should Require Renters Insurance to Reduce Liability
If there is damage to your property that affects the tenant’s belongings (also known as personal property), renters insurance will help cover the cost of replacing the tenant’s property. Tenants may feel that you should cover this cost. It is renters insurance that would help the tenant.
Additionally, if a tenant has a friend visiting, and the friend gets injured, medical claims could be filed against the landlord. If the tenant has renters insurance, it is this coverage that could be used for the guest’s medical expenses. There are benefits to both tenants and landlords.
Renters Insurance can Reduce Responsibility
If there is damage to your rental property that makes the unit uninhabitable, the tenant may feel that it is your responsibility to find them temporary housing. Renters insurance will cover the cost of temporary housing. This is one less concern for you to deal with. Instead, you can focus on repairing the rental unit so your tenant can return as quickly as possible.
For landlords, additional protection for rental property is not a bad idea. Renters insurance is beneficial to both landlords and tenants. It is a good idea that landlords should require renters insurance for their tenants thus providing peace of mind.