As a property manager, renters insurance is likely something you've considered. Maybe you mandate it as part of a lease signing. Maybe you neglect to make it a priority.
However, there are plenty of reasons why offering renters insurance to your tenants is a great idea.
Here, we'll explore five of these reasons as you consider the benefits of rental units protected with insurance.
1. Renters Insurance Protects You Too
One of the primary reasons why offering renters insurance might be beneficial to you as a property manager is that it can help protect you in the case of an unfortunate and unpredictable accident.
Renters insurance typically covers everything from fires to flooding and protects the renter’s personal property against damages that occur from these devastating incidents. For your renter, this means they receive money back so that they can recover all the property they've lost.
The reason why this is so important as a property manager is that it keeps your renters from taking legal action on you in the event that damage to the unit ruins their property. Instead of trying to recoup their losses from a lawsuit against you, they can turn instead to their renters insurance coverage.
2. Renters Insurance Keeps Tenants Coming Back
Next, renters insurance keeps tenants coming back by giving them the means to comfortably relocate as the unit is repaired. For example, if a wildfire burns through the area and does repairable smoke damage to the property, renters insurance will cover the cost for a family to stay in a hotel while repairs are made.
This is vital because it discourages turnover. In many cases instead of finding an all-new place to live, renters can count on their rental unit being there for them once it's livable again. this can save both you and your renter in terms of relocation and turnover.
3. Renters Insurance Can Save Renters Money
Most importantly for your renters, renters insurance can ultimately be a savings. With such small monthly premiums, typically in the range of $15 per month, renters insurance is highly affordable.
For the price of an HBO Max subscription, your tenants can be assured that their valuables are protected under a wide range of accidents. While renters insurance policies differ in what they explicitly cover, your tenant can be guaranteed compensation under most unfortunate circumstances.
This will ultimately be mean savings should such a disaster occur. Instead of having to go out and buy all new furnishings and personal belongings out-of-pocket, they can count on coverage from the insurance company.
4. Renters Insurance Protects Others
Additionally, renter's insurance helps keep all tenants on the property safe. If you are renting out a multi-family unit, this is especially valuable to offer your residents.
No matter how careful a renter is, they can't account for the decisions of others and neighboring units. They're then at risk of accidents that might be caused by another person on the property or even within their own home.
Renters insurance offers liability so that if an accident happens in a unit to someone that doesn't live there, the injured party is covered as well. For example, if a visitor or even maintenance staff slips and falls in a residence kitchen, an injury would be covered by renters insurance.
5. Renters Insurance is Another Beneficial Service You Can Offer
Finally, offering renters insurance is another easy way that you can provide a service to your renters that they can appreciate.
As a property manager, you want to do everything in your power to ensure a great experience for the renters living in your properties. By educating your renters about renter's insurance, you show them that you have their best interests at heart.
You might even work with local providers to help get them a great deal on their coverage. You'll benefit, and so will your renters.
Securing the Safety of Your Properties With Renters Insurance
For any property manager, partnering with rental insurance companies and coordinating with your tenants to ensure that everyone is covered can be an excellent step towards protecting your property and securing your assets.
Not only will your resident’s personal property be protected but issues of liability will be much less likely to lead to devastating legal battles and financial damages.
Explore the marketplace of renters insurance products and educate your tenants the better make financial safety a reality.
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