Written into KIG Capital Real Estate’s lease agreements is a provision that advises the Tenant to carry renter’s insurance to protect the tenant from any such loss or damage.
A reputable and experienced property management company will often present additional terms that require tenants to obtain renters insurance and that the landlords be named as an “additionally insured” on the policy. It is also beneficial to have the tenant show proof of such insurance coverage within days of the date of signature of the Rental Agreement.
Renters insurance, in short, protects the tenant for loss of their own personal property; which is rarely if ever covered by an owners’ policy for insurance on the property.
Here are some of the reasons why tenants ought to consider purchasing renters insurance and why owners’ of apartment buildings should require their tenants to obtain such insurance:
If your property catches fire or suffers an earthquake or any other catastrophic loss, through no fault of the tenant, the owners insurance does not cover the tenant’s personal property or expenses they may incur while the property is being repaired.
If your tenants cause their neighbors to suffer a loss, through bodily injury or property damage, their Renters Insurance will provide protection that would compensate the injured party. This protection can prevent arguments over liability between you and your tenant, and who the neighbors might come after if they have no other protection.
If someone sues your Tenant for monetary damages for some other reason, and they haven’t done anything illegal, their Renters Insurance usually covers, and as the landlord, you don’t need to be involved.
Your tenant’s personal property is protected (less the deductible) while they are away from home, like in their car, or when traveling. If they lose something that is of value to them they may have fewer resources to pay your rent.
They can get discounts on their auto insurance, which will save them money while protecting more of their stuff. Depending on how expensive their auto insurance is their Renters Insurance might even be FREE!
It gives you peace of mind to know that should a loss occur, you won’t have to deal with the Renter’s loss, and you can concentrate on repairing any damage to your property.
Having the funds readily available to replace lost items will reduce the strain on your relationships with your tenants.
It’s very inexpensive, and easy to obtain a policy. A typical policy covering up to $15,000 in property damage and $100,000 in liability coverage cost under $200 per year.