A lot of St. Louis tenants don’t believe they need renter’s insurance, and it may be your job as a landlord to educate them on why it makes sense. You’ll want to require it as part of your lease agreement, and if a prospective tenant pushes back, explain that it’s for their own protection.
Renter’s insurance is an affordable and easy way to bring tenants protection and peace of mind. It’s important that tenants buy their own insurance to cover their possessions as well as any risk that can come from accidents or disasters.
Defining Renter’s Insurance
Renters insurance will usually include liability coverage, protection for a tenant’s personal belongings, and sometimes coverage for additional living expenses in case the rental property becomes temporarily uninhabitable.
Accidents can and will happen, and if there’s damage done to a renter’s possessions or someone gets hurt while they’re visiting, insurance can reduce a tenant’s overall risk and cost. This type of coverage applies to all renters, whether they’re leasing a single-family home or a unit in an apartment building. Ask for proof before you hand over the keys and when it’s time to renew the lease agreement.
Let’s take a look at why it’s such a good idea.
Renter’s Insurance Protects Property
If there’s a fire or a flood or even an accident that occurs at the property but isn’t a tenant’s fault, there can be a lot of damage. Your landlord policy will cover the repairs and replacements of the actual structure. However, the tenant’s personal belongings won’t be covered.
Requiring renter’s insurance gives you and your tenants peace of mind. If a renter’s electronics or clothing is destroyed in a flood, for example, they’ll have to spend thousands of dollars replacing those items if they don’t have their own insurance.
Renter’s Insurance Helps with Pets
Providing a pet-friendly property is always a good idea because it often leads to lower vacancy times and more income, through pet fees and pet rent. However, pets come with risks. Renter’s insurance can reduce those risks. Tenants can choose a policy that includes pet liability, leaving you protected if the animal bites someone while living in your property.
Protecting Tenants from Liability
If something is damaged at the property or one of the tenant’s guests gets injured, there can be a potential lawsuit. Maybe a tenant leaves the kitchen stove on and a fire starts, or a visitor slips on water in the bathroom. Tenants will be protected when they have an insurance policy in place. They won’t have to defend themselves in the lawsuit, and they won’t have to look to your insurance policy for protection.
Renter’s Insurance is Affordable
Make sure your hesitant tenants understand how affordable a renter’s insurance policy is. Most tenants can get a comprehensive policy for no more than $15 to $20 a month. If they have automobile insurance, they can often bundle their policy for additional savings.
We believe renter’s insurance contributes to a safer, more successful rental experience for you and your tenants. If you have any questions about St. Louis property management and how we can help, please contact us at Amoso Properties.