Landlords benefit from renters insurance as much as the renters do. By encouraging the use of renters insurance for your renters, you’re improving the likelihood that renters will be able to pay rent on time and create more responsible tenants in general. This all makes for a happy landlord. Here are 7 benefits to your residents having renters insurance:
1. All of their personal possessions are protected
In most cases, whether the resident possesses renters insurance or not, damage that occurs to a resident’s personal property is the tenant’s responsibility. This helps them to ensure that they can afford to replace their personal possessions if the need arises.
2. Guests that injure themselves are covered
Unless there was provable negligence on the part of the landlord, most liabilities that happen inside the tenant’s personal property is the tenant’s responsibility and covered by their renters insurance. The return visits to doctors for the same incident are also covered.
3. The resident can afford temporary housing
Imagine a worst case scenario such as a fire, flood, or other major property damage that displaces residents from their home. The landlord is required by law to provide temporary housing to residents while repairs are being made. The temporary housing or hotel bill that is paid can be contributed to by their renters insurance so that less has to be paid out of pocket.
4. The landlord is less likely to be held liable for personal injury
Any injury that is a result of the landlord’s negligence can be a liability to the landlord, but if the resident in that unit has renters insurance, their insurance can compensate some of the bill. Also, even if the landlord may not be liable, it can be expensive just defending themselves.
5. You won’t Lose a Renter Due to Liability
In most to all cases, the resident is the one who is held liable for injury to a guest inside their unit. If there is a major injury/lawsuit, the resident may not be able to afford rent and might leave before the end of their lease. This leaves you with lost rent payments and the game of trying to collect on a resident who may never be able to pay.
6. Residents who choose to get renters insurance are more responsible
While not all residents see a need in obtaining renters insurance, those who do tend to be more responsible. This translates to less late rent payments and a more well-kept property. These are all things that property managers love!
7. Renters insurance helps your residents pay you back for damage to your property
Some renters live paycheck by paycheck. If they have accidentally caused damage to your property in the commons or in their unit, you will want to collect, but he/she may not be able to pay up. Rather than going through the struggle of collections, a resident with renters insurance can pay for damages they’ve caused with their renters insurance.
