How important is renter's insurance?

[Hemal Adani]

Hello Folks, My tenants doesn't have renter's insurance. I am not sure how important it is. Please elaborate.

[Chase Gochnauer]

Quote from @Dave E.:

@Hemal Adani it’s important for THEM, not for you. If there is a fire, flood, storm damage, break in, whatever, your insurance will cover repairs to the property, but won’t do anything to replace damaged or stolen tenant items.

Their renters insurance is important for you. In a case of a tenant-caused fire, your insurance co will subrogate their renters policy, so your insurance will not have to pay out. This reduces your exposure a lot.