Do Your Tenants Have Renters Insurance?
Most apartment dwellers do not have renters insurance. Not surprisingly, the number of tenants with insurance in rental homes is even lower. There are two large misconceptions when it comes to purchasing renters insurance. The first is that the landlord has insurance that will cover damage in the event of a fire, flood or break-in. The second is that many people believe their belongings aren’t valuable enough to insure.
Both of these reasons provide landlords with an opportunity to educate their renters by explaining that a renter’s policy covers more than just the contents of the home. It also includes liability coverage in case someone injures themselves on the premises, as well as accidental property damage.
Renters insurance typically covers:
- Your personal belongings, even when they are not inside the home
- Temporary living expenses, known as “loss of use,” if the rental home is deemed unlivable due to damage
- Medical expenses if someone is injured on the premises
How much renters insurance do you tenants need?
Renters insurance typically has a $10,000 minimum for personal property. It’s cost-prohibitive to over-insure belongings, so recommend that tenants calculate the cost to replace their personal items should they become damaged or stolen. As with all types of insurance, lower renters insurance premiums equal higher deductibles. Although this may mean a little out-of-pocket cash for small losses, tenants will pay less money each month and serious losses will be covered.
Recommend that your tenants shop around for the best deal on renters insurance as costs vary from one company to the next. It’s also a good idea for them to make an inventory of their belongings, including purchase prices and dates as well as photos and/or video of more expensive items, in the event they ever need to make claim. Visit us at www.b2rfinance.com and follow us on Twitter @B2RFinance.
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