If you are a landlord or
property manager, do you
require your renters to have
their own insurance policy?
If you've answered no, Keep
watching. While you, the
property owner, may be required
to have insurance on your
rental property. Your renters
aren't obligated to carry
coverage for their contents.
While renters insurance isn't
mandatory or required by law,
there are several compelling
reasons your renters should
have their own renters insurance
policy, and we're gonna be
reviewing those reasons in
today's video. So let's begin.
If your renter causes
unintentional damage to your
rental unit or to the apartment
complex that the rental unit is
in. This coverage will come in
very handy. A few examples of
where this coverage would apply
could be first, if your renter
was cooking in the kitchen and
accidentally started a kitchen
fire and this kitchen fire not
only damaged your unit, but
also the neighboring units in
the building. Or if the
renter was taking a bath or
using the sink and accidentally
overflowed the sink causing
water damage to your unit and
possibly the units below.
While your rental property insurance
may cover damages to the
building, compensation could be
sought from the renters
liability insurance.
We recommend you require your
renters to have about one to
two million dollars in
liability insurance.
When unforeseen things happen,
it's important your renters
have their own renters insurance
policy. Your rental property
coverage will not provide any
coverage to your renter's
personal property. If a renter
gets their own insurance policy,
not only will they have coverage
for their personal property in
the home, but they will also
receive coverage for their personal
property worldwide when they
travel, which is a great
benefit. There could also be
coverage for the cost of
additional living expenses,
should the renter have to
vacate the rental unit if there
was some significant repairs
that needed to be made. While
no one likes to talk about the
worst case scenario, if you're
renters have their own renters
insurance policy, you can have
peace of mind, knowing that if
there was a significant loss,
your renters would have coverage
for their personal property.
As well as potential coverage
to cover any additional living
expenses to help them out in
finding a new place, relocating
and living somewhere else while
your rental unit is repaired.
That way, even though you've
gone through a stressful situation
of having to deal with repairing
your rental unit, you don't
have to worry about the
well-being of your tenants.
Requiring renters insurance
could eliminate unsuitable
candidates for your rental
property. For instance,
if a renter cannot qualify for
renters insurance, do you
really want them renting your property?
Similarly, it could also
eliminate candidates who cannot
afford renters insurance
altogether. Square One's
renters policies start as low
as twelve dollars a month.
So if your renter can't afford
or is unwilling to purchase
renters insurance, this could
be a sign of financial stress
or a lack of care or
responsibility for their
personal property. Would you
really want to rent your rental
property to these kind of renters?
Creating a relationship with an
insurance agent will help your
renters get renters insurance
with ease. And it will also
help you receive the proof of
confirmation of the renters
insurance. As the rental market
tightens, more and more
landlords are requiring their
renters to hold a renters
insurance policy. In fact,
many of them are even making
them a requirement in the lease
agreement. So I'd recommend to
check with your attorney and to
see if you can change your rental
agreements to include a renters
insurance clause. You can even
ask your insurance agent if you
receive any discount on your
own rental property insurance
for requiring your renters to
hold their renters insurance
policy. Square One's
renters insurance policy are
designed to provide the most
comprehensive coverage and at a
very affordable cost for your
renters. You can easily phone
in to set up a policy or your
renters can go online to
Squareoneinsurance.com to get
their quote and buy online.
Typically, landlords these days
will require the confirmation
of insurance before handing
over the keys. The confirmation
of insurance will outline
things such as the limits of
coverage, the date the policy
was initiated and the insurance provider.
For privacy reasons, the
insurer will not be able to
divulge specific details about
the renters insurance.
However, they should be able to
let you know if the policy is
still active. No,
renters aren't required to have
coverage for the building or
unit they live in. Typically
this falls under the landlord's
responsibility as the landlord
is the one with the financial
interest. If
the renters are required to
leave the rental property while
you conduct any large repairs,
the last thing you want is them
looking at you to fit the bill
for those expenses. Here is
where insurance can come in
handy. For example,
say there was unexpected water
damage which required you to
replace the flooring, the
rental unit is now
uninhabitable and would not be
suitable for the renter to live
while these repairs are conducted.
In instances like this, the
renters insurance may have
coverage for the renter to find
a new unit and to live there
temporarily, while you conduct
repairs so you can both live a
less stressful life.
As you can see requiring your
renters to hold a renters
insurance policy can provide
you benefits as a landlord, as
well as providing added
coverage for your renters so
you can have peace of mind as
well. Also, understanding
how renters insurance policies
work will help you clearly
articulate the benefits to your
renters, if you're going to
require an insurance policy in
place. So if you're looking for
an easy and online solution for
your renters to get an online
quote and to purchase, you can
visit squareoneinsurance.com