Thursday, September 20, 2012

Landlords, tenants and Insurance, oh my!

Everybody knows they need insurance to protect their belongings and property to keep from getting wiped out financially. But insurance can also help in other ways.

If you are a tenant, renters insurance can make you look better to a landlord that is screening applicants. It shows that you care and might keep the landlords property in good condition while you live there. If you decide to move, renters insurance policies are often transferable to another property, so you would only need to talk to your agent about updating the policy, not canceling and getting a new one. Renters insurance also provides additional liability protection in case you are sued or damage the property of the landlord or a neighbor. Also, remember that the landlords policy does not cover you at all. If there is a break in or a fire, all your things could be destroyed and would need to be replaced. Without renters insurance, you would pay for everything out of your pocket.

If you are a landlord, having a tenant with renters insurance benefits you by giving you another layer of protection should your property be damaged by the tenant or if a guest of the tenant gets injured on the property. Their policy would provide liability coverage for damages caused by them.  Additionally, since the tenant is taking the time to insure themselves, they have an interest to avoid a claim and may take better care of the property. If you allow dogs or other pets, making sure that the tenant has animal liability is a good way to screen potential renters.

Another thing that some landlords will do for tenants that provide and maintain renters insurance is offer to reduced rent for those tenants. This could provide more applicants to chose from.

All around, renters insurance benefits both the tenant and the landlord. Contact an agent in your area or visit to request an quote for renters, landlords or homeowners insurance. It's free!