As a Tigard real estate investor, you comprehend that renter’s insurance protects your tenants’ personal property from loss or theft. But did you also know that renter’s insurance can protect you and your property as well? There are numerous valid aspects of why your tenants need renter’s insurance. But one of the best from an investor’s standpoint is that it protects you from liability for your tenant’s actions. It’s critical to learn more about what renter’s insurance does and why you should demand the tenants to get it.
Unlike your landlord insurance policy, which covers your rental house and property from damage or loss, renter’s insurance is a policy that your tenant will procure. Most renter’s insurance policies will cover loss or theft of a tenant’s personal property, besides damage the tenant may cause to the property of others. Numerous renter’s insurance policies also cover the tenant and their guests in the event of accidental injuries that occur on the property and lost food, or even hotel stays if required.
You do not assume it won’t affect you should your tenant experience theft or loss of personal property. But it could become your headache, and it can be expensive, especially if your tenant decides to sue you because they can’t afford to replace the items. Or, should your tenant, their pet, or even one of their guests injures themselves or others, you could easily find yourself the subject of a personal injury lawsuit. Even if you are not legally liable for your tenant’s property or the injured person’s medical expenses, dealing with a lawsuit will be time-consuming and expensive. Your best option is to do what you can to prevent lawsuits from happening primarily.
Another common issue experienced by property investors is a loss of rental income when tenants experience theft or property damage. In cases of ample damage, the tenant may even need to move out of the property for a limited period. In some instances, renter’s insurance may help them stay in a hotel while dealing with property repairs.
For that reason, one of the best things you can do for your sake and your tenant’s well-being is to require them to obtain and hold renter’s insurance while leasing your rental home. Keep in mind to include language in your lease documents that clearly outlines the insurance requirements and ensure that your tenant supplies you with proof of coverage ahead of signing the lease. That way, even if they later allow the policy to lapse, you can then hold them responsible for violating the terms of your lease and take any steps possible.
Expert real estate investors understand that requiring renter’s insurance is an important part of your continuing progress. By letting your tenant understand the value of having renter’s insurance and making it a condition of their lease, you are not only protecting them but yourself and your investment property as well.
Would you like more information on renter’s insurance policies and requirements in your area? Contact Real Property Management Assurance at 971-270-2600 today!
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