A renters’ insurance policy protects against loss of personal property such as clothing, jewellery, luggage, computers, furniture and electronics. By doing so, you can help make the process quicker and easier by helping tenants identify relevant coverage options and find a reliable company. Rather than simply outlining the requirements, provide useful information about renters’ insurance as an attachment to the rental agreement or on a page of your website. Renters insurance can help minimise your tenant’s risk, but one of the best ways to minimise your risk is to find tenants who pay their rent on time and respect your property.
Renters insurance in California is no exception to this trend, so landlords in California are free to require their tenants to purchase an adequate amount of renters insurance. In the event that your flat or home is deemed uninhabitable due to a covered smoke damage event, for example, you would be stuck paying out of pocket for any expenses that exceed your typical spending levels if you don’t have renters insurance. Brandon Okita, vice president of FIA Insurance Services in Torrance, California, advises opening every drawer and cupboard in your home to inventory your belongings. But if you have a car, you may pay less if you combine your renters policy with your auto insurance, thanks to multi-policy discounts offered by many companies.
For most renters, renters insurance is an invaluable tool to protect them from potentially devastating financial consequences. If a court holds you liable, your renters’ liability insurance usually covers costs up to the limit you have purchased, even if the incident takes place away from home. Refer to standard renters insurance policy limits when establishing your requirements to further simplify the process. Zillow advises that landlord insurance premiums may increase after a claim, or be cancelled rather than renewed if there are too many claims.
Although not mandatory, anyone renting any type of long-term residence, whether a flat or a single-family home, should seriously consider purchasing a renters’ insurance policy. For example, in many commercial leases, tenants are required to carry property insurance, while in most residential leases, renters’ insurance coverage, if required, applies only to their personal property. Make sure your conversation comes from a place of service and emphasise the benefit to the tenant as the main message. However, tenants who are wary of the risks of a low-probability, high-cost claim should consider purchasing even more coverage.