More and more landlords are insisting their tenants purchase a renters’ insurance policy as a condition of their lease. The reasons are pretty clear; this insurance can help property owners sidestep significant issues. It can also save you a lot of time, money, and headaches should a problem arise down the line.
Why Renters’ Insurance Is a Must for Landlords
1. Ensures the Tenant Is Reliable
Even with background checks and other tenant vetting processes in place, it can be challenging to determine whether a person is indeed reliable. You don’t want to run the risk of signing a lease with someone, only to find out that he or she will be unable to make monthly rent payments. Asking the potential tenant to purchase a renters’ policy upfront will help you tell the difference between reliable tenants and those who are less so.
2. Reduces Landlord Responsibility
Suppose a fire breaks out in a building you own. While your property insurance will cover fire damage, it will not pay for temporary housing for your tenants in the event the building is unlivable until repairs can be made. In this case, you may feel it’s necessary to cover your tenant’s lodging, even if you’re not legally obligated to do so. And depending on the severity of the damage, these temporary lodging costs could become quite expensive.
3. Prevents Lawsuits
In most cases, landlords are not responsible for damage that affects the tenant’s belongings. However, many tenants still take these cases to court, which costs you money no matter the outcome. With an insurance policy in place, your tenants will rest assured that their belongings are covered. This knowledge will also provide you peace of mind.
Renter’s insurance protects landlords as well as tenants, primarily when you work with a reputable company for a policy. In Lexington, KY, Reed Brothers Insurance has established a reputation for fair dealing, whether helping a client find the right policy for their needs or handling a claim after damage has occurred. Along with policies designed for renters, they also offer home insurance, auto coverage, and life insurance policies to protect your family after you’re gone. Request a quote online today or call (859) 253-2728 for more info. These agents aim to make the process as fast and efficient as possible.