As a landlord, you have the option of requiring tenants to obtain renters insurance as part of their lease. Some landlords take advantage of this option and tell tenants that they have to get renters insurance as part of their rental agreement, while others leave it up to the tenants to decide whether or not they want to pay for renters insurance. Today we’ll consider a few good reasons to make renters insurance mandatory in your properties.
It will give you and your tenants peace of mind.
No matter how many precautions you take, there is always a chance that something bad could happen in a rental property. In the event of an emergency such as a fire or theft, renters insurance will cover your tenant and provide financial reimbursement for damages. This will give both you and the tenant a greater sense of security since you won’t have to worry about what to do if something bad happens.
It will protect you from potential lawsuits.
In the event that something bad does happen in your rental property, a tenant without renters insurance could potentially decide to file a lawsuit against you. Typically, tenants file these lawsuits out of desperation. Renters insurance can help you avoid this scenario by giving your tenants the ability to deal directly with an insurance company rather than trying to take you to court.
It will help you find responsible tenants.
Some people may scoff at the idea of obtaining renters insurance before moving into your property. These people are probably not the type of people you want as tenants. If someone is unable or simply unwilling to pay the small monthly fee associated with maintaining renters insurance, they might not make a good tenant anyway. You want renters who will take good care of your property, and obtaining renters insurance is one way for them to prove that they’re serious about being responsible tenants.