Does Renters Insurance protect investors? Probably not.

[Drew Maconachy]

A common theme is for landlords to require their tenants to purchase a Renters Insurance policy.  Some take the next step and have them prove it (good idea).  Here's the problem, an independent study was completed that showed that over HALF of the Renters policies that are purchased are cancelled within the first calendar year.  The widely accepted belief is that a tenant will buy a policy, show the dec page to the landlord or MGMT company, and then immediately cancel it.  Unless you or the MGMT company are constantly checking to make sure the policy is in force, then it's probably useless.  

So what should you be doing?  You should be searching for a Renters Legal Liability policy.  The offerings vary, but generally it provides a landlord with $100,000 of coverage from their tenants (or tenants guests) accidents or negligence that causes a loss to your asset.  And the beauty of it is you are the named insured, meaning you don't have to chase a tenants policy for reimbursement, you (and I) handle the claim from start to finish and are reimbursed directly.  They usually cost $8-$10 a month, and you can remove the requirement for Renters coverage so it should net out for your tenants (as you will pass this cost onto them), but you are assured that all tenants are covered.  No tracking, no headaches.

If you own more than 50 units, reach out.  I can help you.

Drew