Here’s why you and your tenants need to have the right insurance coverage.
Today’s message is for all the landlords out there. I have some great advice to share with you about renters insurance that will help avoid potential disaster with your future tenants.
First, a quick tip. I highly recommend that you call your insurance company and double-check to make sure you’re properly covered. With home prices and material costs going up, you might not have as much coverage as you need.
You know this, but your tenant might not know that your homeowners insurance policy doesn't cover them as a renter. They need to get renters insurance. If they can’t afford that extra $20 a month, it might be a red flag that they shouldn’t even be a tenant of yours.
You or your tenant may be lacking in coverage.
I suggest adding a clause in your rental contract that requires renters to get renters insurance and require proof of it. You may not think that a disaster like fire or flood will happen to you, but it can happen to any of us. If your tenant doesn’t have insurance, all their stress will land on you and add to the stress you’d already have after a home disaster.
To further reinforce the point that it can happen to anyone, I recently ran into a situation like this. I have a rental property, and I got a call at 9 p.m. on a Sunday while I was out of town. My tenant was as well. Water was pouring out of the house, and it could have been going on for a week as far as I knew.
After the fact, I found out that my tenant didn’t have renters insurance even after I asked her to get it when she signed the contract. Most of her belongings were destroyed, and it was a very sad situation that could have been avoided, at least partially. It makes a stressful situation even more stressful.
If you have any questions for me about renters insurance, homeowners insurance, rental properties, or anything else related to real estate, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.