When a new renters comes along with all of the right qualifications, it might seem like you hit the jackpot—unless they don't have renters insurance.
Palm Island renters without renters insurance can become a problem for investors. Plus, residents will lose out on plenty of benefits if something goes wrong and they don't have an active renters policy. It's a lose-lose situation. Yet, not every rental property owner makes insurance a requirement before allowing a new resident to move in.
Is it worth the hassle? Can rental property owners require renters to carry this type of insurance? As an expert Palm Island property management company, we know the answer to both questions is: yes! It's one of the best ways to protect your investments. Here's why.
It Covers What Landlord Insurance Can't
Some renters might believe that your landlord insurance policies cover their belongings and other expenses if something goes wrong during their lease term in your rental. Saving a few dollars by skipping renters insurance can come back to haunt them when they learn about the limits of your coverage after a theft or fire on your property.
Your Insurance is For You
Landlord insurance helps real estate investors recover from property damage, rental income default, disasters, and other things that can go wrong when owning rental properties. However, your coverage doesn't extend to the renters living in your Palm Island homes.
A renter without renters insurance might try to hold you responsible for compensation to replace stolen or damaged belongings, creating headaches, frustrations, and sometimes leading to lawsuits that wastes time and money.
Renters Insurance is for Renters
Most renters insurance coverage is inexpensive—while providing the protection renters need to recover when something unfortunate happens. Most policies include:
- Compensation for losses due to damaged or stolen property
- Living expenses if a renter becomes displaced due to property damage
- Medical expenses up to a specified amount if a renter suffers an injury while living in your property
If your rental suffers a catastrophe, your renters can work with their policy provider to receive compensation for damage to personal belongings and living expenses while seeking temporary housing until they can return to your property. As the property owner, you work with your insurance providers to repair the property and recover lost income until renters can return and resume paying the rent.
An excellent Palm Island property management company helps renters with a benefits package that includes renters insurance coverage. There's no need for property owners to deal with the hassles of making sure your renters have this critical insurance! A property manager can do it for you.
Investors Benefit From Renters Insurance, Too
While a renters insurance policy doesn't directly provide any benefits to real estate investors, it can help you indirectly! Palm Island property owners can receive discounts on landlord insurance premiums when requiring all renters to have an active renters insurance policy.
Be clear about your renters insurance requirements when advertising your rental and throughout the screening process to follow Fair Housing regulations. It must apply to all renters and all properties. Make sure your requirements also extend to existing residents and renewals. When it's time for a renter to sign a new lease, request confirmation of a valid renters insurance policy that extends through the full lease term.
Better Renters Understand the Perks
If a potential resident refuses to keep renters insurance, they probably aren't a good fit for your rental. Dependable renters know that having an active policy demonstrates responsibility to a property owner during the screening process.
If you're not sure how to incorporate a renters insurance requirement into your renter criteria, a Palm Island property management company can enforce it for you while following the law.
Renters Insurance Doesn't Let Investors Off the Hook
When rental property owners fail to provide effective security measures or safe homes, a renter that experiences property theft or injury due to owner negligence might have grounds for a successful liability lawsuit.
Requiring renters insurance is smart! Make sure you also honor your legal responsibilities to provide safe, secure housing for renters. Renters who experience an excellent rental property and Palm Island property management services are more likely to work with you (instead of against you) as you handle a crisis and restore your rental property.
Protect Investments With Property Management and Renters Insurance
Real estate investors can't buy renters insurance for their residents. However, making it a requirement and partnering with the best Palm Island property management company is a smart decision to protect your investments.
When you choose Gulf Coast Property Management, you get expert rental property care and a team of experts that understands the importance of renters insurance coverage. Our required resident benefits package includes renters insurance coverage! We make it part of the qualification process so that it's never an issue for investors. Contact us to learn more about it!