Why do I need it?
Part of being a property manager is obtaining renters insurance and home owners insurance. Our company also requires us to be added as additional insured parties, allowing us to make claims on your behalf if the need arises, or get any information about a renter’s claim that could happen. In order for us to require any of this from you, we’d like to give you some information about the benefits of having renter’s insurance, so that you know what the easiest, and smartest option for you is.
Renter’s insurance is defined as an insurance policy that primarily covers the contents of a lease dwelling. A dwelling is usually defined as a single-family home, condo, townhouse, mobile home, modular home, apartment or any building, or part of a building, with separate sleeping quarters, kitchen, and bathroom. There are also renter’s insurance policies for houseboats, RV’s, and campers. There are three main parts to renter’s insurance:
• Contents Coverage – this is important to tenants as it covers their belongings within their leased dwelling (Our built-in liability insurance does NOT do this)
• Liability to Landlord Coverage – this is important to us as your property management company as it protects the dwelling in cases of damage. This is what we have built into our leases for those of you that don’t have renter’s insurance.
• Loss of use Coverage – this is a big part of renter’s insurance and is important to the tenant and property management company in cases where the dwelling can no longer be inhabited due to a covered incident (also NOT covered on our liability insurance)
Renters Insurance can cover anything, it’s up to you and your insurance broker to decide what you need as a renter and what might be able to be excluded from your policy. We do require at least 100,000 in liability insurance, so there’s that!
So, how much does it cost?
According to insurance industry research the number of people who purchase renter’s insurance is rising, thankfully, but currently here, less than half of all renters have an active renter’s insurance policy.
Which is a little scary for property management companies and owners alike. Lack of education about the importance of renter’s insurance is a big player here – but Renter’s insurance generally costs anywhere from $10-18 a month here in Denver.
Risk Management and Renter’s Insurance
Risk management is all about forward thinking strategies, and if you mandate that renter’s insurance as an integral risk management prong, make the process simple, affordable and trackable – therefore making your job as a property manager that much easier.