Mandating renters insurance
When tenants benefit from renters insurance, landlords might, too … There are multiple types of coverage with renters insurance: Unless negligence can be proven, a landlord is usually never responsible for damage of theft of a tenant’s personal property.
Let’s say your tenant’s belongings were stolen as a result of a break-in that was no fault of yours.
For the record, I require my tenants to get a minimum of 0,000 in liability, and ,000 in personal property coverage.
My Recommended Coverage: Renters insurance is an insurance policy, carried by the tenant, which generally provides coverage for the tenant’s personal property and liability from accidental injuries to guests and property damage.
If you don’t, you might be responsible for your tenant’s stolen property.
If a tenant accidentally damages another property or dwelling, the other owners might come after you (or your home insurance) if your tenant does not have a renters policy.
Damages to neighboring properties are more common than you would think.
Along those same lines, if your property were damaged from a natural disaster, such as a flood, storm, or fire, your tenant will probably need to move out while repairs are being made. But if your tenant didn’t have renters insurance and couldn’t afford a hotel, they might make other arrangements and could be less likely to return to your property.
Related: The 6 Most Important Clauses in a Landlord Insurance Policy The liability part of renters insurance, the part of most interest to landlords, which Eric Narcisco mentioned earlier, kicks in when the tenant messes up, such as by causing a fire by smoking or leaving a pot cooking on the stove overnight.