Landlords Urge Tenants to Buy Renters Insurance…
As a landlord why do I recommend renters insurance to all my tenants? Simple, a renter should have protection against fire, damage, and theft just as most homeowners have and enjoy!
I’ve been a landlord since early 1990. In years past, renting an apartment was much different and a lot easier than it is today. Back then a renter had plenty of apartments to choose from, and basically just needed to write a check for the first and last month’s rent, sign a lease agreement and give a smile and a handshake.
But today, the conditions for a renter are more daunting than ever. A renter looking to sign a lease today faces stiff competition from other would-be renters, intense background scrutiny and even in some cases for renters with pets, a pet interview.
The changes of renting an apartment today go beyond available housing and the vetting process. Look no further than renter insurance.
Renter insurance went from something that a landlord might suggest to now where most landlord will strongly recommend “or” in some cases even be stipulated in the lease agreement.
According to the National Multifamily Housing Council. A 2016 Insurance Information Institute poll conducted by ORC International found that 95 percent of homeowners had homeowner insurance. Among renters, only 41 percent said they had renter insurance.
Naturally, the idea of another cost of renting leaves a bad taste for renters. However, renter insurance offers tangible benefits (just like most homeowners enjoy) to renters. Look at it this way – a typical renter of a 2-bedroom apartment has about $30,000 worth of possessions and it is prudent they protect and insure their valuables just as most all homeowners do.
And the cost of insurance is much cheaper for a renter versus a homeowner. According to the Independent Insurance Agents and Brokers of America, the average cost is only $12 per month, or $144 per year, for $30,000 of property coverage and $100,000 of liability coverage. Which happens to be a fraction of what homeowners pay. Plus, renter insurance can offer contents coverage for your belongings that are damaged, destroyed, or stolen.
So, why the big push by landlords for their renters to adopt renters insurance “&” how should renters feel about it?
The big push by landlords is simple. A renter insurance policy that includes liability coverage helps reduce legal exposure for both tenant and landlord — plus, in some cases, landlords can possibly receive a break on their own insurance rates in the process. As for tenants, they now have the protection most homeowners enjoy and for much less, too boot.
I know that the last thing a renter wants is another requirement, but this recommendation/requirement serves a true purpose and is a mutually beneficial solution for both the renter and the landlord.
So, when your landlord recommends/requires renter insurance. Please don’t think it is one more hoop to navigate. Instead, try to see it as a necessity and mutual benefit for both you and your landlord!
After all – something that might seem like a thorny recommendation/requirement at first just might actually turn out to be a blessing later on down the road when needed.
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