While many landlords require their tenants to have renter’s insurance, it is not uncommon for property owners to not consider the importance of making insurance a mandatory requirement in their lease agreements. If you do not currently require your tenants to be insured, read on to learn more about the importance of renter’s insurance.
Provides Tenants With Relocation Expenses
Many landlords do not realize that depending on the state they live in they may be required to provide tenants with the costs associated with relocating in the event of a fire or natural disaster. Even if state law does not require you to do so, many landlords feel bad for tenants who are left without a place to go and will end up providing them with help at their own expense. However, this is one of the primary roles that renter’s insurance plays in the event that a fire or natural disaster forces a tenant to relocate. Thusly, requiring your tenants to have renter’s insurance will save you money, and reduce your level of responsibility, in the event of a disaster.
May Help Weed Out Potentially Bad Applicants
One of the greatest difficulties landlords face is trying to weed out bad applicants to find the right tenants for their property. By requiring all of your tenants to have renters insurance, and making this clear during the application process, this can help to weed out potentially bad tenants. If an applicant complains that they can’t afford renter’s insurance during the application process, this should be a red flag that they may not be able to afford rent considering that renter’s insurance premiums average $15 a month. If the low cost of renter’s insurance throws off their budget, will collecting rent become a struggle in the future? This can help you to choose reliable applicants during the process of finding new tenants.
By requiring your tenants to possess renter’s insurance you will be helping to protect them, as well as yourself, in the event that a disaster occurs. If you would to like to discuss your options for tenants and or renter’s 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!
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.