Most landlords leave it to their tenants to decide whether they need renters insurance or not. This makes sense, because the landlords typically have their own policies, and renters coverage only covers the tenants' belongings. However, renters insurance also benefits landlords. In fact, it is advantageous enough that you should consider making it a condition of your lease agreement that tenants purchase and maintain coverage.

3 Ways Renters Insurance Benefits Landlords

1. It Covers Your Deductible

Tenants must often pay a security deposit before moving in to cover any damages that occur during their occupancy. However, any repair costs beyond the deposit amount must go to the insurance company. Unfortunately, you'll still have to pay the deductible. However, if a tenant has renters insurance, you can often reclaim your deductible amount from their insurer. This keeps you financially whole, even if a tenant leaves significant repair costs when they move out.

2. It Improves Your Potential Tenant Base

If you require renters insurance as part of your lease agreement, it weeds out prospects who cannot afford coverage or who are denied coverage due to prior claims or unacceptable risk factors. This ensures the prospects you do get are in better financial condition and have not been involved in property insurance claims in the past.

3. It Mitigates Your Risk of Being Sued

Renters insurance pays for losses that occur due to fire, storm, vandalism, theft, and other events. If a tenant loses everything in such a disaster but has no coverage, there is a good chance they might try to show in court that you were somehow—all or in part—responsible. If they have coverage, their insurer reimburses their losses so there is no need to come after you. Their coverage, therefore, protects all parties concerned.

Landlords, encourage your tenants to purchase renters insurance through Superior Insurance™. They are an independent insurance broker with four locations throughout Raleigh and Durham, NC, specializing in renters, homeowners, business, and auto insurance. Visit their website to get in touch with them online, or call (919) 224-8034 to request an insurance quote.