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Do Tenants Need Renters' Insurance

When you sign a lease with a new tenant, one of the questions you should ask is whether or not they have purchased renter's insurance. At Bray Property Management, we believe that every tenant should have this vital coverage. If your tenants are wondering why, here are some of the reasons you can share with them, and also some reasons why the coverage will benefit you as the property's owner.

Your Insurance Is Not Sufficient

The property insurance you buy for the property only covers the property, not its contents. If someone is injured or the property is damaged, your insurance should cover the costs. If your tenants' belongings are damaged as a result of an insured event, they will not be covered.
Many tenants do not understand this fact, and they therefore don't purchase any rental insurance. Make sure that it is clearly outlined to any potential tenants, so they understand the risk of not purchasing insurance.

Renter Insurance Is Quite Affordable

Many tenants don't purchase insurance because they think they can't afford it. However, most policies are under $200 a year. The amount of coverage and the location of the property will affect the coverage, but the affordability makes it almost impossible to overlook the benefits of this insurance coverage.

Renters' Insurance Covers Theft

Theft is always a risk, especially for renters in multi-unit buildings where neighbors can see their comings and goings. Renter's insurance policies typically cover the risk of theft, so your tenants' belongings will be replaced if they are stolen.

Renter's Insurance Covers Landlords

Your property insurance covers your liabilities as the property owner. If someone slips and falls in the property, and you are found liable, the insurance should kick in. However, if your tenant has renter's insurance, it will be the first line of defense. This means you may not have to file a claim with your insurance provider if the renter's insurance deems the problem is a coverable incident.

In addition, Bray Property Management encourages landlords to ask their tenants to get renter's insurance because the renter's insurance policy may cover damage to the property that occurs because of the tenants' negligence.

Encouraging Renters to Buy Insurance

Understanding the benefits of renter's insurance for your tenants is just the first step. Once you do, you need to convince your tenants that the purchase is an important one for their needs. Many renters are on tight budgets, so they may not want to add an additional expense to their already tight budgets.

By partnering with Bray Property Management, convincing your renters of the need for renter's insurance is much easier. Bray Property Management includes a section about renter's insurance and the risk of not purchasing coverage in the lease signing video that all renters have to watch. This takes the task of convincing the renters off of your shoulders. Contact Bray Property Management today to learn more.

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