In today’s litigious society, requiring tenants to have renter’s insurance can help achieve a landlord’s goal to profit as well as protect their assets. Renter’s policies provide valuable coverage to both you and the tenant, and are very affordable. Here are the three main reasons why this benefits you:
1. Legal Protection
Slip and falls are the #2 leading cause of injuries throughout the United States. What happens if the tenant has a guest over that gets injured, who is responsible? Both you and the tenant could be included in the lawsuit. If the tenant doesn’t have adequate coverage to pay for the lawsuit, the guest could come after you. A renter’s policy would provide your tenant with liability coverage to protect both parties.
2. Reduces Risk of Filing Claims
Why have claims on your record for damages not caused by you? There’s an even greater risk of claims being filed with multiple people living in the building. If tenants have their own policy, claims will go on their record instead of yours. It’s important to remember that every claim can potentially increase your insurance rate. What’s worse is that a company can even decide to stop insuring you if too many are on your record.
3. Protection for Other Tenants
Accidents happen every day. If you own a duplex or have multiple tenants, there’s greater risk that your tenants could damage their neighbor’s property. For example, if water is left running and leaks to the unit below, it could damage other tenant’s property. If everyone has their own renter’s policy, their property will be protected should it ever be damaged.
For more useful information from our affiliate company, visit the Murphy & Jordan Insurance blog.