Protecting the tenant and landlord with insurance is a smart expenditure for piece of mind. If your property catches fire, through no fault of the tenant, the owners insurance does not cover the tenants personal property or expenses they may incur while the property is being repaired.Who might they come after if they have no other protection? If your tenants cause their neighbors to suffer a loss, through bodily injury or property damage, their Renters Insurance will provide protection that would compensate the injured party.This protection can prevent arguments over liability between you and your tenant, and who might the neighbors come after if they have no other protection? If someone sues your Renter for monetary damages for some other reason, and they haven't done anything illegal, their Renters Insurance puts Insurance carrier money on the table and as the landlord you don't need to be involved. Your tenant's personal property is protected (less the deductible) while they are away from home, like in their car, or when traveling.
Written into most lease agreements is a provision that advises the Tenant to carry renter's insurance to protect tenant from any such loss or damage.
But this suggestion does not often get follow-up on and may not help fully protect the landlord or tenant.
A reputable and experienced properpty management company will often present an additional terms that requires the tenant to obtain renters insurance and that the landlords be named as an "additionally insured" on the policy.
It is also benefital to have the tenant show proof of such insurance coverage within days of the date of signature of the Rental Agreement.
Today, apartment and home owners and renters are obliged, by both federal and state laws, to abide by a number of other rights and duties that govern the modern landlord-tenant relationship.
For example, beyond "delivering possession" of a property to a tenant at the beginning of a lease, a landlord has to provide a "habitable" apartment or house that is free of vermin (cockroaches and mice are good examples) as well as serious defects—like poor electrical wiring, gaping holes in the floor, even walls covered in lead-based paint--that could cause harm or otherwise endanger a person's safety.
(Most states prohibit landlords from adding language to a lease that says you, the tenant, "waive" or give up this right, by the way, so keep an eye out for wording that suggests it or something similar.) Landlords have to respect your right to privacy, too--with certain exceptions.
Depending on how expensive their auto insurance is, their Renters Insurance might even be FREE! That certainly wouldn't hurt your standing with them! It gives you peace of mind to know that should a loss occur, you won't have to deal with the Renter's loss, and you can concentrate on repairing any damage to your property! Having the funds readily available to replace lost items will reduce the strain on your relationships with your tenants. You will have fewer problems than other Landlords, assuming everything else is equal, so you will have more free time! As the landlord you can make this a mandatory condition of renting the property, which means you never have to worry about your tenants not being covered, and most importantly... It's very inexpensive, and easy to obtain a policy.
A typical policy covering up to ,000 in property damage and 0,000 in liability coverage cost under 0 per year. Corrin began his career in the Insurance Industry in 1983, and has been involved in Insurance, Real Estate, and Financial Services his entire adult life. Trowbridge resides in Redwood City, with his wife and business partner Virginia, and services clients all over the Bay Area and California.
He graduated from Kenyon College, in Ohio, and has obtained an MBA from the University of Phoenix and the LUTC designation from the American College.
Long gone are the days when all a landlord had to do was make an apartment or other rental unit available to a paying tenant.