Looking to improve your bottom line in 2016? Considered adding a liability insurance requirement to your lease. But why?
February 2, 2016
Because Accidents Happen
Accidental damage is inevitable, but making sure your property is protected is a choice. With an insurance requirement in your lease, you can rest knowing that the property is always covered.
It Can Decrease Your Costs
A claim on your property insurance can be expensive. Between the deductible and out-of-pocket repair expenses, you may be out much more than what a tenant security deposit can cover. On top of that, your premiums may increase due to the incident. If this was to instead be filed on your tenant’s policy, you would not need to worry about your rates being affected.
There Are Tenant Benefits, Too!
Requiring residents to carry insurance can also benefit the resident. Most renters insurance policies cover the renter’s personal belongings, in the event that they are damaged during incident, as well as can cover the living expenses should a renter need to be temporarily housed while repairs are taking place. Not only does requiring insurance benefit you as the owner, the tenant has some protection for his or her own property as well.
Your property is your investment, and protecting that investment is a priority. Consider passing some of that responsibility to your tenant and implement an insurance requirement in your leases today.