Renters insurance isn’t a requirement. But it is something that should be strongly considered. It offers many perks for both landlords and tenants.
One of the top benefits renters insurance provides is the relief in knowing that there is coverage in case the unexpected or unfortunate should happen. When a tenant doesn’t have renters insurance, it could potentially spell conflict down the road, including legal battles. For example, if someone steals something from the tenant, they may expect you to cover the theft. But if they have renters insurance and their property is stolen (or even damaged) it should be covered.
Depending on the type of renters insurance policy, it could help in other situations as well. For example, if the tenant has liability insurance and they damage someone else’s property or cause someone else to get hurt, the insurance should provide coverage. Renters insurance may also cover damage if it’s done by a tenant’s child or pet.
When a tenant has renters insurance, it makes your life as a landlord a little easier. In the case of a fire, for example, you may not have to pay for a place your tenant can stay if they have coverage. If they don’t have renters insurance, you may be required to house them, depending on the state laws. Another way that renters insurance can save you money is when the tenant causes damage.
Each renters insurance policy has different levels of coverage. When deciding whether to require renters insurance or not, you may want to speak with a lawyer or property manager, to discuss what you should require from your tenants. You’ll need to put that information in the lease. It’s also a good idea to get proof that your tenant is covered and request proof once a year, to make sure it doesn’t lapse.
One more benefit of renters insurance is that you’ll be able to know a little more about your tenant and if they’re a good fit for your property. If they don’t want insurance or can’t pay for it, that may be a sign they can’t afford your rent.
When you partner with PMI, we can help you determine what to include in your lease and what to require of your tenants. Reach out to us today to learn more. PMI Virginia.
