One of the “insider secrets” we share with our Landlords in our property management program is the importance of requiring tenants to secure their own insurance. The landlord’s dwelling coverage would insure the structure, but not the tenant’s possessions. A renter’s policy provides provides personal property and liability protection for the tenants.
So, why should I as the landlord, care whether or not the tenant has a renter’s insurance policy? Because, if there is an accident, it is best that your tenant’s policy does the heavy lifting. A kitchen sink overflows and damages hardwood floors, a grease fire in the kitchen causes major damage, or your tenant’s dog bites a neighbor – all of these accidents would be covered by the tenant’s policy.
We require tenants in our property management program to carry at least $300,000 in personal liability on their renter’s policy, and to list our landlord as an additional insured on the policy (that way we are notified by the carrier if the policy lapses).
Be sure to check with your insurance agent for policy exceptions and optional coverage.
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