Renters insurance: an all-around win win
“Renters insurance” suggests benefits for renters and renters insurance offers plenty of those, but it has positive effects for the landlords too. Besides coverage of the tenant’s property in case of theft, fire, storm, and water damage, renters insurance can cover damage costs to the leased property caused by the tenant. In other words, holding renters insurance is a win-win for all parties involved.
Renters insurance can be accessed to cover repair and replacement costs of damage to the lease property the tenant is responsible for. Although this doesn’t happen very often, repairs can be expensive and are something the landlord or the building insurance shouldn’t have to pay for due to an unexpected event.
Third party coverage will help keep your relationship with the tenants much healthier, even at difficult times after major loss occurred. By having renters insurance in place will keep away disputes over who is more disadvantaged financially, regardless of whose property has been damaged.
Driver of Profit
Through renters insurance, the landlord transfers risk from himself, thus increases his profitability. Claims could be costly if filled on the owner’s building policy and could cause steep rate increases that have a high deductible, but can be prevented through renters insurance.
These days, insurance providers are also taking steps to simplify the process for renters. Many allow getting coverage entirely online, without those lengthy phone calls and without submitting documents via snail mail. Also, these allow opting out at any time. It’s that easy.