This has often been a topic of hot debate among apartment community owners. Requiring tenants to purchase renters insurance, in Read More…
Should You Make Your Tenants Buy Renter’s Insurance?
This has often been a topic of hot debate among apartment community owners. Requiring tenants to purchase renters insurance, in the past, has been a differentiating factor for tenants when choosing an apartment. However, with the monthly cost of renter’s insurance being less than the cost of a few cups of coffee, more and more tenants are willing to purchase insurance if it means that their property is protected.
Here are the top five reasons why having your tenants purchase renters insurance is a good thing for all parties involved.
- Personal property coverage. If your apartment community were to be destroyed by fire, of no fault to the tenant, it is likely your apartment insurance will not cover the cost to replace your tenant’s’ personal property. Multifamily insurance policies often only cover the cost to repair damaged structures which does not include computers, clothing, furniture and other personal belongings. A renter’s policy will cover their items, making the $10-$20 monthly investment, well worth the cost.
- Bodily injury and property damage coverage. If your tenant is responsible for causing a loss to another tenant, whether it is a bodily injury or property damage, then their renter’s insurance will cover the injured party. Without a renter’s insurance policy in place, the injured party may have grounds to come after you, the landlord, to recoup their losses.
- Added discounts on other insurance policies. Often renters insurance can be bundled with car insurance to give your tenants an additional savings. Plus, with a policy that will cover your occupants’ losses, they will have more money in hand to cover their rental obligation to you without having to pay to repair their damaged items out of pocket.
- Less involvement from the landlord to recoup losses. Without renters insurance, your tenants are somewhat at your mercy when their property is damaged. You are not legally obligated to replace their property during a flood or fire, as long as you have maintained the property in accordance to local standards. In some cases, apartment community owners can take out additional insurance policies to cover personal property and may choose to pay tenants a portion of their losses. Either way, it increases the time you must spend on determining the amount of funds to distribute and coordinate with your insurance provider. With a renters insurance policy, your tenants can go directly to their insurance provider to get the funds they need to cover their property losses and you can focus on getting your apartment community restored.
- Lowers your insurance costs and liabilities. Not only does renters insurance protect your tenants if something should happen to their personal property, but it also reduces the liability on your end. In some cases, apartment community insurance companies are willing to lower your insurance premium if you can prove that your renters have their own form(s) of insurance to cover damage. This also eliminates the need for you to have to take out additional insurance plans to compensate your tenants for their personal property loss.
The benefits outweigh the risks, making renters insurance a common sense option to provide all around protection for your tenants. At Top Floor Insurance, we specialize in apartment community insurance and are happy to meet with you and review your insurance policy to see if you have the right coverage, at the right price. If you’d like to discuss additional ways that you can save on your insurance premiums and protect your apartment community (and your tenants), feel free to call our insurance specialists at 404-266-3218.