As an investor in real estate in Cocoa, you know how important renter’s insurance is. It shields your tenants’ personal belongings from loss or theft while giving you peace of mind. It is a huge relief to know that you aren’t responsible for your tenant’s actions. It’s vital to understand renter’s insurance and why requiring it for your tenants is important for both your security and theirs.
What is landlord insurance?
Unlike landlord’s insurance that covers the rental property, renter’s insurance is a policy procured by your tenant. Most renter’s insurance policies cover the loss or theft of a tenant’s belongings and any damage the tenant causes to other people’s property. Renter’s insurance often includes coverage for accidental injuries to the tenant and their guests on the property, and for hotel stays if necessary.
Prevent potential issues from escalating
It’s easy to assume your tenant’s personal property loss or theft won’t impact you. Yet, it could turn into a significant financial burden if your tenant sues you for being unable to replace their items. Renter’s insurance serves as a financial safety net in these instances, protecting you from potential losses.
Even if you aren’t legally liable for your tenant’s property or an injured person’s medical bills, managing a lawsuit will be costly and time-consuming. However, requiring your tenants to have renter’s insurance is a proactive measure to prevent these situations, giving you control over your property and finances.
Renter’s insurance can often provide temporary accommodate on
A common issue property investors encounter is losing rental income due to tenant theft or property damage. With extensive damage, tenants may have to move out for a short period. During property repairs, renter’s insurance may cover hotel stays for tenants in such cases.
Why it’s essential to encourage tenants to have insurance
One of the best measures you can take for your and your tenant’s well-being is to require them to obtain and maintain renter’s insurance while leasing your rental home. Including clear insurance requirements in your lease documents and requiring proof of coverage before signing protects your tenant and prepares them for unforeseen circumstances. This way, if the policy lapses, you can hold them responsible for breaking the lease terms and take necessary action.
Savvy real estate investors understand the importance of requiring renter’s insurance for long-term success. Helping your tenant appreciate the value of renter’s insurance and making it a lease condition protects them and your investment property.
Would you like additional information on encouraging tenants to get renter’s insurance policies? Real Property Management Brevard can provide assistance. Contact us online or at 321-610-8022 today to equip yourself with the knowledge to make informed decisions about your investment.
Originally Published on Nov 20, 2020
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