Pets & Liability - Smart or avoid?

[Princesa Hansen]

We have half a dozen rental units (homes & townhomes). We have generally prohibited allowing pets. However, I see many postings saying that it can be a wise strategy to allow them in rentals.

We were recently weighing our options, and so I started with a conversation with my insurance agent. She strongly cautions against allowing pets because of liability. Obviously we can exclude the prohibited dog list. However, if anything happens, she cautions that our policy likely won't be renewed after the incident.

So, for those of you who allow pets:

-What is your thinking on these issues? 

-How do you address liability & increased risk?  

-What sort of language do you use in your lease?