Today we are discussing renters insurance and whether as a property manager should you require your tenants to have it. Renters insurance is a policy that protects the tenants in case of certain events that occur at your property. For example, if a tenant has a car stolen or someone is injured inside the home, the renters insurance will protect that Concord tenant. The coverage depends on the actual policy that’s in place.
We believe it’s a great idea for owners to require that their tenants get renters insurance. We explain to all our tenants up front that the property owner’s insurance policy will not cover their personal belongings, and that’s one reason we recommend renters insurance.
We also recommend that owners require the tenants have at least $300,000 in liability coverage included in their renters insurance policy. The owner should also be included as an additional insured on the policy, with no additional cost. This type of insurance is separate from the property owner’s rental dwelling policy. They are two separate types of insurance that serve different needs.
Renters insurance is different from company to company and policy to policy. There are various deductibles and premiums and there might be exclusions that the tenant needs to be aware of. If you’re going to require this type of insurance, let the tenants know it’s their responsibility to acquire it and then provide you with a copy of the insurance policy before they move in.
This is just a brief overview of renters insurance. If you have any questions or you’d like to discuss the topic further, please don’t hesitate to contact us at Golden Gate Real Estate and Management.