Salem, NH · Member since 2013 · 66 posts · 19 votes
Good Evening...
I've seen a lot of leases where the property owner requires the tenant to show proof of Renter's Insurance. Is this something that you do? Why? I guess the real question is what impact does it have on me as a Landlord, if something were to happen, and a tenant opted not to have insurance. Obviously, we all understand that our investment properties are only insured for the dwelling (s), and not contents. I just want to know if this is something that I absolutely should require, and if so...why?
Albany, NY · Member since 2015 · 5 posts · 8 votes
11y
John, most landlords want proof of coverage at lease signing and renewal, but that does you no good if the policy cancels halfway through the term. You can and may require that tenants list you as an "additional interest," which would give you notification of cancelations, lapses, non-renewals, and renewals.
Additional interest doesn't provide you any coverage, of course, beyond the liability coverage on the policy, but it certainly puts your mind at rest. Those sound like Class A units you're renting, so intentional non-pay cancels are unlikely, but people do forget things once in a while so it's good to have.
It's usually a bit more expensive to spread out payments on the policy, but most companies will do it. The national average is around fifteen dollars a month. But with renters insurance as inexpensive as it is, there's really not much reason to do monthly payments for most people renting at that price point. But it's an option.
Great topic and great information given by poster. thanks you all for your information.
I've worked at complexes that require it and it's hard to enforce after the initial requirement of having the tenant show proof of insurance.. or if they drop or cancel it hard to track continued coverage.
But it's a great protection for them and the owner.. and we always provided information to tenants on how to obtain coverage.. our complex agent was happy for the referrals and we supplied folders in our move in packets.
I require tenants to have insurance but am not concerned with their property or other personal costs coverage. I am primarily concerned that they have a minimum 1M liability coverage.
Rental Property Investor · Union city, NJ · Member since 2016 · 203 posts · 43 votes
9y
i manage property mgmt partnerships for Lemonade, a company offering renters insurance, now with a $0 deductible option for the first time in the world. Happy to connect with anyone who wants to know more about insurance or has tenants