Many landlords worry that requiring renter’s insurance might scare away tenants and result in longer vacancies, but not requiring it could cost even more.
When considering renter’s insurance, some landlords may initially think, “My property is insured, so why should I care?” However, as experienced property managers, we strongly disagree. Requiring renter’s insurance can actually save landlords money in the long run in various situations.
For instance, if you allow dogs on your rental properties, you run the risk of being sued if the dog bites someone. Requiring tenants with dogs to have renter’s insurance with liability coverage for dog bites could save you money in legal fees.
Additionally, tenants often store personal items in basements, assuming their belongings are safe. If these items get ruined due to sewer backups or leaks, tenants may blame you. Requiring renters insurance could help avoid strained relationships and property damage.
Furthermore, landlords may believe they are fully protected by their property insurance. However, filing a claim on a rental dwelling insurance policy could lead to increased premiums or policy cancellations. Requiring tenants to have their own renter’s insurance might lower the chances of facing these issues.
In summary, requiring renter’s insurance could protect landlords in various situations. Before making a decision, it’s essential to consult with an insurance professional to understand the risks and repercussions.
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