Benefits of Tenants Liability Insurance

If you're looking for a competitive advantage in your rental market, then one of the things you should consider having is tenant's liability insurance. If you mandate an insurance policy for a resident against accidental damage that goes beyond wear and tear, you'll be able to reduce the amount of a security deposit that is required – in some instances making it deposit free. In return for an affordable premium that's included with the rental payment, a tenant can have confidence that they won't have a ton of fees upon moving out as well.

Here are the additional benefits of carrying tenant's liability insurance on your property.

1. Stand Out From the Rest

This insurance covers the deductible for serious damage and covers basic claims so that you won't need to hunt down a tenant who probably doesn't have the money to pay for the problem anyway.

2. Get Instant Coverage

A simple change to your lease is all that is needed to add tenant's liability insurance to all of your properties. It can even be added to a lease extension addendum! Many providers will then allow you to easily turn on the insurance policy with a quick phone call or a click of the mouse.

3. Receive Reports

Many policies will track the performance of each rental unit so that you can see where you're in compliance and where you need help with implementation.

4. It Isn't Renter's Insurance

It is important to inform your tenant's that this insurance policy is different than a renter's insurance policy. It will not cover any of their personal possessions and will not cover their responsibilities for a serious accident. It will, however, cover the deductible payment required of their renter's insurance policy for a serious incident, such as starting a fire accidentally.

5. It Is Extremely Affordable

In many instances, tenant's insurance coverage can be obtain for a very affordable cost that even your tenant's won't recognize. Most policies have no fees to get the plan started and there are policies on the market today that are less than $10 per unit.

6. You Protect Your Investment

With this insurance in place, you'll protect your property and have a cost-effective way to get damage quickly repaired.

7. Increase Profitability

With a tenant's liability insurance plan in place, greater profits and returns on your investment can be realized because there is less risk on the part of all parties. Tenants won't have to worry about that coffee stain they just created and end up causing more damage trying to get the stain out of the carpet. Your source of income gets protected in return so you won't have to spend thousands you can't collect upon just to restore the property to a rental condition. That's a win/win situation.
Posted on Jun 09, 2014


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