A Win-Win Situation? Yes it Is!!

On a monthly basis I’m talking to owners or property managers regarding whether they should require renters insurance for their tenants. It is a choice to require it, but you need a program to enforce it. If you require renters insurance you must make sure all tenants have renters insurance. Another choice is to highly recommend renters insurance. The one choice you really can’t have is to say nothing at all. If nothing is said, then it could turn into a lose-lose situation.

What’s the win-win situation you might ask? In this case it’s protecting yourself while helping someone else protect themselves! Personally, I have a large deductible on my properties. If a tenant causes a loss I don’t want to be stuck with a large deductible to pay if the covered loss was caused by the tenant. By requiring renters insurance I am spreading my risk, and that’s good for me. What are some of the losses that might be covered by tenant’s renter’s insurance? Some examples are a candle fire, a short in an extension cord, a grease fire, or a tenant’s washing machine hose breaking causing water damage. Not to mention, any of these damages to a unit could affect other units as well, and how about if a tenant’s pet bites another person in the building, or a visitor hurts themselves in your tenants unit? The list goes on.

How does the other “win” of the win-win come into play? The tenant will protect their own “stuff” and liabilities. If there is a fire or theft from their unit, how are they going to be made whole again? Many tenants say they don’t have much, but if you add everything up it’s usually more than you think. If there is a fire and everything is damaged the renter has to get back on track…and that probably doesn’t mean shopping for sale prices. They need everything back right then…and they can’t blame you for their loss. Renters insurance can also pay for “additional living expenses”, any additional expenses incurred, could be paid by the renters insurance. The other benefit to the tenant is if they have their auto and renters policy with the same carrier they usually get a discount that lowers their premium even more!

How much is renters insurance for the tenant? Ask your agent but policies can start as low as $8 per month! You should also talk to your insurance agent, or our office, about what your options are to help with getting on a renters insurance program. We have special “renters insurance” programs that help owners and property managers get information and quotes to their tenants. We can also help with tracking who has renters insurance and who doesn’t.

Inform your tenants of your requirements, when it comes to renters insurance. A win-win situation is always a good thing, and makes life a whole lot easier.