Five Main Reasons to Require Renter’s Insurance
Both experienced and amateur landlords know that renter’s insurance can prevent a tenant from becoming angry or even leave the property because of damage to the property itself or their personal belongings. Fires, floods, and even natural disasters like hurricanes or tornadoes can create a lot of loss, and having renter’s insurance can save a lot of money, headache, and heartache for the tenant and the landlord.
- It covers loss from fires, floods, and other incidents. This is the major reason for requiring renter’s insurance, as stated above. The amount of money to be saved from these common disasters usually covers the amount of money to be spent on the insurance itself.
- If your tenants have to be out of the property while any repairs and/or renovations are being made, the insurance may actually provide them immediately with a hotel to stay during the repairs/renovations to their home or may later reimburse them for a hotel room.
- Renter’s insurance can also cover loss and damage from negligent tenants. If a tenant floods the unit or causes a fire, the insurance will cover the repair and renovations from that damage.
- Having tenants with renter’s insurance will save the landlord from claiming the loss or damage on their own insurance. This will also save the landlord money in the long run on their insurance policy.
- Dog bites may also be covered. If a tenant has a dog that bites someone visiting the home, the renter’s insurance will cover the claim.