In today’s day and age having renters insurance is more and more becoming a routine checklist item within landlord and tenant lease agreements. While renters insurance is not always a listed requirement within some lease agreements, it is always a wise idea for a tenant to have renters insurance for both their own protection, as well as their landlord’s. In these uncertain global pandemic and economic times, the last thing a tenant, or landlord, wants to have to worry about is an unexpected major expense that they are not prepared to pay for. Below we have listed several of the benefits of having renters insurance for both tenants and landlords.

Renters Insurance Can Make Tenant Screening Easier

 Every landlord wants to ensure that they are filling their rental property with the most qualified and responsible tenant(s) possible. This is especially true during these uncertain times where more and more tenants are unable to consistently pay their rent on time, or at all for that matter. One terrific way of ensuring that you are renting out to trustworthy and financially responsible tenants is by making renters insurance a requirement within the lease agreement that the tenant must sign before moving into your rental property. This is by far one of the easiest and safest ways to make sure that you are renting out your property to financially responsible tenants. By making renters insurance a requirement within your designated lease agreements, you will eliminate potential financially unstable or irresponsible applicants who do not wish to commit to the extra monthly payment that comes along with having renters insurance.

 By implementing a mandatory renters insurance clause within your lease agreements, you will most likely be weeding out unqualified/unprepared applicants whom are not willing to make the necessary financial sacrifices necessary to protect both themselves, as well as you and your rental property.

Landlords and Tenants Can Reduce the Chances of Personal Injury Lawsuits

 Having renters insurance in place greatly reduces the chances of tenants being personally sued due to damages or injury that happen to occur, whether it does or does not occur as a direct result of the tenant’s actions. Personal liability coverage is one of the most important aspects that renters insurance covers if somebody happens to be injured on the property in which the tenant is renting. This cannot be overstated enough.

 Tenants who do not have renters insurance cover could face an expensive negligence lawsuit, extensive legal bills, and payment of damages to the injured person/parties involved. In most cases, renters insurance will cover the tenant when an injury occurs. The amount of protection the insurance covers will differ from policy to policy, but landlords can stipulate within the lease agreement that tenants maintain a minimum amount of coverage.

Tenant May Be Covered for Damage to Property

 While unfortunate, one of the most common instances occurring is when a tenant damages the rental property but is unable to pay out of pocket for the repairs. When these situations arise both the tenant and property owner are put in a difficult position. However, if the tenant has renters insurance, some (if not all) of the repair costs may be covered by the insurance policy.

 In these extremely uncertain economic times, knowing that your tenant(s) will not be personally financially responsible for property damage (in most cases) is an extremely valuable commodity for landlords and property owners. If a landlord has to go after a tenant for expensive repairs it not only could be a time consuming and stressful ordeal for the landlord, but it could also really hurt a tenant financially and will most likely lead to his or her inability to pay rent or other expenses, such as utilities. This commonly leads to landlords having to make the difficult decision of having to either implement repercussions, or possibly evicting the tenant altogether.

Property Owners Are Protected When Tenant Property is Stolen or Damaged

 In the event of a fire or robbery involving the rental property where a tenant’s possessions are either damaged or stolen, it can be a confusing time for everyone involved. If it is clearly not the tenant’s fault, who is responsible for the damaged property? How will the tenant replace the lost belongings? Unfortunately for landlords and property owners, tenants may try to come after you in these situations.

 When one of these unfortunate scenarios arises, the benefits of having renters insurance are invaluable. Tenants can recover damages for their lost or damaged property, and the property owner does not have to face legal recourse. The insurance policy typically compensates the tenant for whatever they lost without getting the property owner or property owner’s insurance company involved. Some common tenant possessions that renters insurance will cover include:

• Electronic devices
• Cell phones
• Furniture
• Kitchen and other appliances
• Computers
• Certain other personal belongings

Landlords Do Not Need to Make Claims on Their Own Insurance

 Tenants who have renters insurance afford their landlord/property owner the luxury and advantage of additional protection with this policy in place. If there is an accident caused by the tenant, or the tenant’s negligence is the reason for the property damage, the renters insurance will be targeted first to cover the expenses incurred. This prevents the property owner or landlord from having to file a claim with their own insurance company.

 Being able to avoid making claims on their own insurance policy ensures that property owner’s personal insurance rates will not go up. This eventually saves the property owner hundreds, or sometimes even thousands, of dollars in insurance premiums and deductibles.

Property Managers Can Help Implement Renters Insurance Requirements

 If property owners want to ensure that everything gets done correctively and as efficiently as possible, they can enlist the services of a professional property management company. Experienced property managers can assist property owners with renters insurance by including a specific addendum within all lease agreements, suggesting the best renters insurance policies available for your tenants, and communicating with the insurance companies when necessary. If you plan to require your tenants to have renters insurance in order to lease out your rental property, it is worth hiring a property manager to assist with the process. For Las Vegas and Henderson residents, it is wise to contact a reputable Las Vegas property management company to help assist you with all lease addendums.