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Updated 5 months ago on . Most recent reply

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Daniel Mendez
  • Investor
  • Dallas, TX
46
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253
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Renters Insurance: How do you explain it to the tenant?

Daniel Mendez
  • Investor
  • Dallas, TX
Posted

Good afternoon,

I am renting out my first property and it seems like it is important for me to require renters insurance from the tenant.

What would you say to a tenant as to why having renters insurance is a benefit to them? Or what does it protect them from?

  • Daniel Mendez
  • Most Popular Reply

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    Greg Scott
    #2 General Real Estate Investing Contributor
    • Rental Property Investor
    • SE Michigan
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    Greg Scott
    #2 General Real Estate Investing Contributor
    • Rental Property Investor
    • SE Michigan
    Replied

    Easy peasy.  Here are a number of things you could say.  (FWIW, be sure you have them add you or your entity as additionally insured.  That way if they cause a loss, their insurance covers your deductible.  Also, you get notified if they cancel the insurance.

    1) Because it is a requirement  In other words, you cannot rent this unit if you don't have insurance.

    2) As a landlord, our insurance does not cover your items.  Your insurance covers your stuff. If there was an issue, such as a fire, wouldn't you want all new stuff?

    3) If there is a major issue at the property such that nobody can live there, it is expensive to move and you need time to find a place.  Insurance will usually put you up on a hotel for a few days to get settled.

  • Greg Scott
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