Why Requiring Renters Insurance is so Important
Some property managers don’t require tenants to hold renter’s insurance because they think checking that all tenants are covered is too time-consuming. Others may not even know about the benefits of renter’s insurance.
Renters’ insurance is beneficial for both property managers and tenants. There’s no reason for property managers to disregard renter’s insurance just because they don’t have the time to manage COIs (Certificates of Insurance). SmartCompliance aid’s property managers in tracking COIs and assuring compliance is met while saving time and money.
What is Renters Insurance?
Renters insurance is a policy that protects tenants from loss or damage to personal property due to things like fire, theft or vandalism. Renters insurance also covers tenants if a visitor is injured on the property.
There are benefits for property managers who require renter’s insurance like the coverage of deductibles on other policies in some cases.
Renters insurance needs to be a requirement in every lease agreement. The biggest players in property management require tenants to hold renter’s insurance, so it’s becoming more important for property managers with smaller-scale businesses to also require this coverage.
How Renters Insurance Benefits Property Managers
Most of the time it’s difficult to figure out who’s at fault when it comes to property damage or negligence. By requiring tenants to hold renter’s insurance this becomes a non-issue because nobody has to pay for all the damages.
Five benefits of renter’s insurance for property managers are explained below.
- Third-Party Property Damage: If a third-party enters a property and their personal belongings are damaged, a renter’s insurance policy will pay to repair or replace the item.
- Liability: If guests on a property are injured and need medical attention renter’s insurance will cover these bills.
- Cover Deductibles: If a tenant’s negligence causes a property manager’s insurance to kick in the tenant’s renter’s insurance policy will cover the deductible on the property manager’s policy.
- Living Expenses: If a building needs repairs that require tenants to move out renter’s insurance will cover the cost. If renter’s insurance is not present the property manager will have to pay these living expenses.
- Investors: Those looking to invest in a property will feel comfort when renter’s insurance is present because they are assured they will not have to pay for damages or unforeseen circumstances caused by tenants.
Don’t Worry about Added Work
Requiring renter’s insurance for every tenant can be lots of work, but SmartCompliance has a solution. Our Residential COI management software for property managers allows for easy tracking and compliance.
Get started with a free demo to see how SmartCompliance will help you.