Renters Insurance - Enforcing and If Covers Tenant Damage to Your Home

Insurance
3yFollow

Renters Insurance - Enforcing and If Covers Tenant Damage to Your Home

Vanessa Leal
Member since 2023 · 1 post · 0 votes

Hi All,

I was wondering how a landlord can enforce the requirement that a tenant purchase and maintain renters insurance with a certain limit of liability throughout their tenancy. What if they move in and don't get it, or they buy it but then cancel it after showing you proof of purchase?

Can a landlord buy the insurance on their behalf and bake it into the cost of the monthly rent to ensure it's purchased?

Also, if the tenant causes a fire in the home (God forbid) due to their negligence, will the renter's insurance cover the damages without me having to use my homeowner's policy? 

What if the tenant pretty much destroys the home (walls messed up, carpets destroyed, etc), can the landlord make a claim for these repairs with the renter's insurance policy under the "liability" section upon tenant move-out?

Thanks for your help! 

Somewhat New Landlord

0Reply
13 views

1 Reply

Jump to latestLatest
  • Courtney UrbanekBusiness Member
    Specialist · Kansas City, MO · Member since 2022 · 36 posts · 7 votes
    3y

    Hi Vanessa! 

    A lot of landlords and property managers require proof of insurance prior to giving the keys to the renters. So after their application is accepted, the next step is for them to get renters insurance. You can have them add you as an additional interest/interested party on the policy. It shouldn't cost them any extra. As an additional interest, you are notified if they cancel or make changes to the policy. 

    NREIG does offer coverage called the Tenant Protector Plan, which may be what you are looking for if you want to pay for coverage and pass the cost along.

    Typically, if the building is damaged, that falls under the landlord's policy and you'd make the claim. But, if the fire was caused by the renter's negligence you could make a claim against the renter.

    If the tenant destroys the home, most people keep the renters' security deposit and asses the damage to see if it's worth filing a claim. Too many insurance claims for minor items will most likely result in an increase in your insurance premium. You could always take the tenant to small claims court, but again, it's up to you if that's worth the headache. Your best bet to protect yourself from tenant damage (other than wear and tear) is to do a thorough background check. 

    Hope this helps!

    National Real Estate Insurance Group4.2251 Reviews
    WebsiteView Page
    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free