Tenant insurance covers your renters’ personal property, liability and additional living expenses in the event of a loss. So how does that benefit you, the landlord?
Quicker repairs after a loss
Under a tenant insurance policy, the insurer will take care of removing the tenant’s personal property from your building, if required. Without an insurance policy, the occupant would have to arrange to remove their belongings themselves, which can result in delayed repairs.
Save money on your landlord insurance
If your tenant is found responsible for damages to your property, your own landlord insurance policy will cover the cost of repairs or replacement. However, this would be counted as a claim against your policy and may result in a higher deductible or higher premium on your next policy renewal. Too many claims can also make it difficult to be insurable.
When a tenant has their own insurance policy: If a claim is paid for damages under your insurance policy (for damages the tenant is found responsible for), it gives your insurance company the right to recover the cost of the repairs from the tenant’s insurance company. This could result in the claim not being chargeable against your landlord policy, which can help in keeping your deductible and premium lower.
Did you know that, as a landlord, you can be sued for an act that your tenant is liable for? This could be something as simple as a tenant’s dog biting a passer-by. If your tenant does not have their own liability insurance, it could be alleged that you would be responsible for damages or injuries to a third party as a result of your tenant’s action or inaction.
In this situation, the liability coverage under your own landlord policy would have to defend you, and could result in a claim against your policy. However, you may still be required to appear in court. This creates hassle and inconvenience to you, which can be avoided by requiring your tenants to have insurance.
Attract the right tenants
People who protect themselves with tenant insurance are often conscientious and responsible individuals. These traits could make them less likely to cause damage to your property and more likely to make their rent payments on time.
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This article is intended for informational purposes only. It is recommended that you speak with your Agent, Broker or Insurer for accurate information pertaining to your specific insurance policy and/or individual insurance needs.