Top 6 Things Landlords Should Know About Renter's Insurance
Most new landlords have heard they should require renter’s insurance from their tenants but don’t know much more beyond that basic fact. The main reason to require insurance is to clarify that the tenant, not the landlord, is responsible for any accidents in the unit. Also, renter’s insurance is a financial cushion for both parties in case of an emergency. For the tenant, it means extra income to cover an emergency. For the landlord, it means the tenant’s hardship won’t result in rent payments default. Next, we’ll give you six facts about renter’s insurance you should consider when renting a property.
Note: The content on this page is meant for informational purposes only and doesn’t replace the counseling of an insurance agent.
Typical Amounts of Renters Insurance Coverage
$100,000 – Personal Liability
$5,000 to $30,000 – Personal Property (depending on their valuables)
$10,000 – Living Expenses
$1,000 – Medical
Protections Against Lawsuits
You want the tenant to understand that you are not responsible for any lawsuits. By requiring renter’s insurance, you are helping to clarify the issue.
Get Added in The Tenant’s Policy
You cannot file claims, but the insurer will notify you if the policy lapses. You can also assure your tenant that the addition won’t cost any extra money.
Happy Tenant Happy Landlord
The tenant will have an extra safety net in case of disaster, and the landlord reduces the chance of the tenant defaulting on rent payments.
Some renter’s insurance also covers pet-related liabilities. So, for example, if you run a pet-friendly operation, it could protect both of you against dog bites lawsuits.
Average Cost in Florida
According to Nerd Wallet, the average cost of renters insurance in Florida is about $16 a month. The Sunshine State’s average is higher than the national number; seasonal hurricanes are probably the reason for the higher premium.
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