If you own real estate and you have renters you might be surprised to find out that many of them believe your insurance will cover their belongings. They don't realize catastrophes like a fire, theft, or slip and fall accident are their responsibility.
Rental Insurance 101
If you own real estate and you have renters you might be surprised to find out that many of them believe your insurance will cover their belongings. They don't realize catastrophes like a fire, theft, or slip and fall accident are their responsibility. So while your policy might cover the actual building, many renters fail to realize coverage for their personal property and liability for injuries there is on their shoulders.
Guidelines For Landlords: Explaining Rental Insurance
Although it's not your job to act as an insurance agent, or to recommend places for coverage, it's not a terrible idea to mention renters insurance and its benefits to your renters. In addition to protection from liability for injuries, renters insurance can cover many physical items such as:
Electronics like TV, stereo, computers
Small appliances like microwaves, toaster ovens, etc.
Furniture and accessories
Clothing
Art work like paintings or other valuable collections
Dishes, silverware and cookware
Sporting equipment
Books
Jewelry
The cost of rental insurance is based on several factors like the dollar amount of the coverage, deductibles, property location, etc. Again, although you can't advise pricing to your renters, it's not a bad idea to discuss it because knowing that your renters have rental insurance may provide both of you peace of mind.
