Just imagine that you own a house or a condo and you decide to rent it out. You become a landlord, and you are happy with your tenants. They pay on-time, clean up after their dog and don’t throw wild parties. Everything is smooth until… the hose bursts on the washing machine and water covers the laundry room, kitchen and family room floors. After your initial panic, you call your insurance company and they say, “You are covered!” You reply, “Great, thank you!” Then you proceed to ask the claims adjuster additional questions… again you said, “I am covered, right?” Yes, the claims adjuster says again. You question more since it seems too good to be true, “So, the water cleanup is covered?” Yes. “Replacing the wet drywall and baseboards, is that covered? Yes. Drying out or replacing my soaked cabinets from my laundry room and kitchen?” Yes. “Now, what about my tenant’s belongings?” Well, no, their items are not covered. “What about my tenant’s hotel bills since they can’t live at the residence?” No. You exclaim, “Wait…I thought you said I was covered? “ YOU ARE COVERED, not your tenants. Your tenants need to call their renters insurance company to cover their belongings, their liability and their additional living expenses. You call your tenants and they mention that they didn’t purchase renters insurance! Now what? You ponder, since you are a “caring” landlord, do you need to pay for their hotel bills and their ruined personal property?
Solution…on every lease, REQUIRE, not suggest or recommend, that all tenants purchase renters insurance. The cost is usually around $200/year and it covers the tenant’s personal property, liability, and additional living expense. When you REQUIRE the renters insurance, also be named as an additional insured. The insurance company will send you, the landlord, a copy the renewal, a notice if the customer misses a payment, or if the policy is cancelled.
Renters insurance, that the tenant purchases, give the renter and the owner peace of mind.
That makes you a “caring” landlord!