While, as the owner of your building, you surely have insurance for your property, do you know many of your tenants have insurance on their possessions? Some tenants believe that your insurance will cover their belongings in the event of a fire, flood, or theft. It’s wise to educate your tenants about rental insurance and how it can protect them, not only because it helps them stay secure, but it can avoid some headaches for you as well.
The Expense of Renter’s Insurance
Most of your tenants will discover that tenant insurance is available to them for a very low rate. After all, the insurance you have already covers the building. All that’s left to cover is your tenant’s belongings, including whatever furniture, electronics, and other personal items they own.
What Renter’s Insurance Covers
Despite the low cost, renters insurance covers a wide range of misfortunes. Most content insurance policies and renter’s insurance will cover the value of any items that are stolen. They generally also offer liability insurance, which means they will pay for the medical bills of someone who is injured in the rental property.
Few tenants realize they could be held liable if their guest is injured while in their rental unit. Instead, they assume that any accident that occurs on the property is the building owner’s responsibility. However, it could be their responsibility if their belongings or negligence caused the accident.
Taking the time to explain tenant’s insurance can prevent a tenant from trying to hold you responsible for an accident that occurs on the property that was their responsibility.
Renter’s insurance will also cover your tenant’s living cost if they have to move to temporary lodgings in the case of a fire or flood. Some renters mistakenly believe that covering their temporary housing costs is your responsibility. Explaining this to them, and encouraging them to get tenant’s insurance is a smart way to avoid a conflict over temporary housing costs in the event of an emergency.
The damage that leaks and fires cause is also a concern for tenants. Your building insurance policy may cover the broken pipes themselves, but not the furniture or other damaged property that belongs to the tenant. Again, many tenants do not realize that they may be on the hook for water damage. Simply alerting your tenants to this reality and proposing tenant’s insurance can help them be prepared for these unfortunate events and limit potential conflict.
Get a Property Assessment from Central Erin Property Management
Educating your tenants on the value of tenant insurance? It’s a smart idea that can save you both a few headaches down the road. Great property management is all about predicting problems and preparing, so you can save money and time.
Central Erin Property Management can foresee and avoid issues that many property owners may not even know about. We’ll make your rental property more profitable and will take the stress off your hands. Reach out to us today to get your property management proposal.