As a landlord, you can require tenants to obtain renters’ insurance. This insurance helps prevent disputes and fortifies your property. By enforcing insurance policies, you guard not only yourself from altercations with tenants but also your property. Muller Insurance is an independent agency with over 100 years of experience in the insurance industry. Here, we discuss the right to require renters insurance and why this coverage is crucial for your success as a landlord.
Your Right To Enforce Renters’ Insurance
Since you own the rental property, you need insurance to protect it against various risks. This is where renters’ insurance can become beneficial. Renters insurance safeguards the contents and personal property within the building and serves as security for your tenants’ belongings.
Enforcing renters’ insurance is critical, but it is also valuable to have landlord insurance. For instance, purchasing apartment building insurance enables you to protect the facility from structural issues or damages left behind when renters vacate. Having landlord insurance also assures that you have complete ownership of the property. Since you protect the physical building tenants dwell in, you can expect and require them to guard their possessions with renters’ insurance.
The Advantages Of Requiring Coverage
Obligating renters’ insurance provides landlords and tenants with multiple benefits. For example, renters usually can find inexpensive insurance options with a small monthly fee that could end up saving them tremendously in the long run. This extra layer of security also will:
Ease Your Mind
As a landlord, you already have a lot on your mind, but requiring renters’ insurance will remove some of those concerns and worries. This coverage will help you pay for lawsuits and other legal fees if a tenant blames you when their belongings are lost or damaged and takes you to court.
Augment Landlord Insurance
Both renters’ insurance and landlord insurance offer liability and defense coverage. Therefore, requiring tenants to obtain renters’ insurance can enhance your protection against legal claims. With a combination of renters’ and landlord insurance, you can avoid selling your property or tapping into personal financial resources to cover litigation costs.
Filter Out Irresponsible Renters
Requiring your tenants to obtain renters’ insurance helps ensure that your tenants are financially responsible and can afford to rent from you. For instance, if a potential renter expresses concern with affording renters’ insurance, it can be a sign that they may not be in a good financial situation to meet monthly rental fees.
Cover Your Deductable
Unfortunately, tenants may experience unforeseen circumstances of damage. Typically, your insurance will cover fire and water damage, but you must pay a heavy deductible first. However, if your tenant has renters’ insurance, most insurance agency policies will cover your homeowner’s deductible, saving you a substantial amount of money.
Keep yourself and your renters shielded from overpaying with renters’ insurance. It never hurts to be safe or to have a plan set up in case of a financial emergency. It is also wise to prevent lapses in insurance policies by completing annual check-ins on renters’ insurance plans before renewing your tenants’ lease agreements.
Each State’s Specific Legal Implications
Renters’ insurance covers various things depending on the specific state that you are renting in. Most renters’ insurance plans will cover damages to tenants’ items and injuries, but all policies must adhere to their state-specific legal implications. For instance, the New Jersey state government has numerous laws and regulations regarding landlords and tenants.
Leave Your Renters’ Insurance Questions To Muller Insurance
At Muller Insurance, we have been working with landlord and renters’ insurance policies for more than a century. As an independent insurance agency, we work with numerous leading companies to find the most affordable and relevant policies in NJ, NY, CT, PA, NV, and other states.
Allow us to educate you on your right to require insurance and the various advantages of making this choice. Contact us to learn more about renters’ or landlord insurance or get a quote today.