Should you require your tenants to purchase Renters Insurance? Here are a few things to consider:
- Your home owner’s insurance policy will most likely not cover tenant personal items in the event of a loss. Most policies pay out to cover the repair or replacement of the building itself but not the personal items inside. Your tenants should be made aware of this fact at move in and reminded of it on a consistent basis.
- Most tenants do not purchase renters insurance for a variety of different reasons. Some tenants believe the policy premiums will come at a cost they cannot afford or they may believe that the value of their belongings is not worth buying coverage.
- Renters insurance can be paid in installments and can be as low as $10-$25 per month for approximately $25,000 worth of coverage. You may also buy coverage for your tenants and consider including it into the price of their rent. Policies are not hard to find and can usually be purchased at the same companies that offer auto insurance.