Owning a property is an investment for which you don’t need to take more risks than necessary. In the case of unexpected events that could cause damage to the building or belongings, or potentially injure tenants, renters insurance protects both you and your tenants; it’s mutually beneficial for both landlords and renters.
More and more landlords are requiring tenants to have renters insurance before signing a lease. Renters insurance is critical to mitigate potential landlord-tenant disputes over damages and loss, not to mention avoid legal battles that can be financially devastating. Protect yourself by ensuring all tenants purchase renters insurance.
Here is a list of five reasons why renters insurance is a good idea and why you should consider making it a requirement for tenants to purchase a policy.
You want the best possible renters; requiring proper coverage can help ensure this. A red flag should be raised if applicants say they can’t afford renters insurance or they simply don’t need it. Responsible renters will see the necessity of this simple, affordable safety measure. Moreover, those who are on board show that they care about their home and the wellbeing of themselves and others.
Looking out for your renters shows that you aren’t only concerned about receiving their monthly rent cheque. Requiring all renters have an insurance plan ensures that in the case of water and fire damage, or theft, that they’ll have the proper coverage for alternative housing and to replace destroyed or stolen items. You can rest assured that if a catastrophe happens, your tenants will be properly covered.
As a landlord your building insurance does not cover the contents of suites. Contents are only covered are if tenants have coverage. Renters insurance protects items from damage and theft whether tenants are at home or away from their home. In the unfortunate case that your tenants don’t have insurance and their belongings are damaged in a fire or stolen, this could lead to a nasty dispute, which takes us to reason number four.
When your renters are adequately covered, you’re likely to stop any disputes over damaged or stolen property before they even happen. On the flip side, without coverage, if something suddenly happens that leaves tenants without housing and with a huge financial burden–who do you think they’ll claim is responsible? They might try and place the blame on you. Avoid unnecessary court battles and the associated fees on behalf of everyone, and make renters insurance mandatory. It’s an affordable and simple way to avoid any nasty disputes.
Take a weight off your shoulders. Ensuring your renters are covered is a smart extra layer of protection for you and them. Peace of mind is priceless; renters insurance plans are usually less than $20 a month. It’s a win-win situation for all. Plus, who needs another thing to worry about? Not you!
Renters insurance is a great option for landlords and renters alike. At MIG our team is here to help your future tenants through the process of getting the proper coverage to protect themselves and their belongings. With a few simple steps, they’ll be on their way, adequately insured in the event of disaster or theft. To get started and get a quote, click here.