While renter’s insurance can be critical in protecting your tenants in the event of a fire or break-in, a surprising number of renters choose to forgo renter’s insurance. This is often due to the fact that tenants do not realize how costly it can be to replace their belongings in the event of a fire or robbery, and it can also be due to a misconception amongst renters that their landlord’s homeowners insurance will cover them in such an incidence; however, this is not the case.
Why It’s Important
By requiring that your tenants have insurance, you will not only be helping to ensure that they are protected, but you will also be helping to protect yourself in the event that a break-in, fire, or natural disaster occurs. If you currently do not require your tenants to possess renter’s insurance, we will be discussing over the course of our next two posts the reasons why it is important that you do so.
It Reduces The Threat of Lawsuits
Perhaps the most important reason for landlords to require their tenants to have renter’s insurance is that this will protect them from a lawsuit. Unfortunately, if there is a fire or break-in at your rental property, this may leave you vulnerable to being sued by your tenants if they do not have insurance. After discovering that their belongings are not covered by your homeowner’s insurance, many tenants may try to come after you for damages. However, if you require all of your tenants to have renter’s insurance, this will mitigate the threat of lawsuits as tenants will be covered by their insurance.
Additionally, if your tenants do not have insurance you may also be vulnerable to being sued if a tenant’s guest becomes injured on your property. Without an insurance company to file a claim against, the injured party may try to come after you for the costs of their medical bills. Renter’s insurance then ensures that you and your tenants are protected no matter what happens.
Requiring tenants at all of your rental properties to possess renter’s insurance is critical in protecting you from the threat of a costly lawsuit. Keep reading to find out more about the reasons why it is critical that your renters have insurance. If you would to like to discuss your options for tenant insurance please call us at 561-732-9305 our quoting hours are Monday through Friday from 8:30 AM to 5:30 PM. In addition, you can request a quote online. Please remember, We Handle All the Work, While You Save!
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Rob Macoviak is the President of Oyer, Macoviak and Associates. Oyer, Macoviak and Associates is the oldest independent insurance agency in Boynton Beach and has been in business since 1953.