Landlords Urge Tenants to Buy Renters Insurance…

By
Real Estate Broker/Owner with Kolsky Realty & Management 01311273

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.

 

 

Musiq Soulchild "Just Friends" (Cover) David Morin Live On The Streets - Camden Town, London

 

 

 

 

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Ambassador
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Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude

I have always required it, Jon, although no currently a landlord. It’s just a prudent thing to do as a tenant, required or not, given what the landlord’s homeowner’s policy may or may not cover

Jeff

Jun 27, 2018 10:41 AM #1
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Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Hi Jon- I had it even when I had my first apartment back in the late 70s!  I remember that a friend who didn't had a fire in her apartment and wish that she'd had renter's insurance. 

Jun 27, 2018 10:52 AM #2
Rainmaker
1,292,599
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

Hi Jon,
I think many renters don't realize how inexpensive this kind of insurance is.  Definitely worth the investment for peace of mind for all concerned. 

Jun 27, 2018 03:07 PM #3
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Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

                                         

                                 Hi Jon, you've been featured in the group Bananatude.

Jun 27, 2018 04:06 PM #4
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John Meussner
Mason-McDuffie Mortgage, Conventional Loans, Jumbo Loans, FHA, 203(k), USDA, VA, - Walnut Creek, CA
#MortgageMadeEasy Walnut Creek, CA 484-680-4852

Never a bad idea to be covered.  Renters insurance is super affordable and worth having if and when it's needed

Jun 27, 2018 08:11 PM #5
Rainmaker
2,494,862
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

I worked several years in the insurance industry, as both a fire insurance underwriter, and in claims.  I can attest that what you write here about the importance of tenants having insurance is right on!

Jun 28, 2018 06:27 AM #6
Rainmaker
2,494,862
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

CONGRATULATIONS Jon, on having this blog FEATURED in the Old Farts Club group!    

Jun 28, 2018 06:29 AM #7
Rainmaker
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Susan Haughton
Long and Foster REALTORS (703) 470-4545 - Alexandria, VA
Susan & Mindy Team...Honesty. Integrity. Results.

We require it in our rental properties and have no problem with it as the rentals are in a beach town with a serious lack of decent affordable housing, which means there is always someone who wants to rent our places, although for the past few years, no one has moved out! 

Jun 28, 2018 12:36 PM #8
Rainmaker
1,285,871
Jon Kolsky
Kolsky Realty & Management - Long Beach, CA
Licensed California Real Estate Broker

Jeff Dowler, CRS ~ it is prudent for tenants to have a piece of mind and it is also much more affordable for tenants than a homeowner to have security... We "The Kolsky Group" don't require it but we strongly suggest it.... AND.... THANK YOU! I really appreciate the PM, thanks for looking out

Jun 29, 2018 10:26 AM #9
Rainmaker
1,285,871
Jon Kolsky
Kolsky Realty & Management - Long Beach, CA
Licensed California Real Estate Broker

Kathy Streib ~ I am sure you were covered back then just as I know you're covered now! It's bad enough to go experience such loss "but" to not be insured? That's a low as it gets... Renters Insurance is something I strongly advocate and suggest to all my tenants  

AND... THANK YOU! I always love being featured in B-Tude

Jun 29, 2018 10:36 AM #10
Rainmaker
1,285,871
Jon Kolsky
Kolsky Realty & Management - Long Beach, CA
Licensed California Real Estate Broker

Carol Williams ~ yes, renters insurance is very affordable for a renter compared to homeowners insurance for a homeowner. And I agree - it is prudent to have insurance  

Jun 29, 2018 10:41 AM #11
Rainmaker
1,285,871
Jon Kolsky
Kolsky Realty & Management - Long Beach, CA
Licensed California Real Estate Broker

John Meussner ~ we are in full agreement! And not to make light of it but it is so true - no one likes to be caught with their pants down

Jun 29, 2018 10:44 AM #12
Rainmaker
1,285,871
Jon Kolsky
Kolsky Realty & Management - Long Beach, CA
Licensed California Real Estate Broker

Myrl Jeffcoat ~ you have the inside jump on this having been in the business... You know just how important it is to be covered when needed and I am happy you commented and shared your thoughts... And of course, THANK YOU! I love being featured in OFC

Jun 29, 2018 10:48 AM #13
Rainmaker
1,285,871
Jon Kolsky
Kolsky Realty & Management - Long Beach, CA
Licensed California Real Estate Broker

Susan Haughton ~ we don't require it "but" we strongly recommend it... Maybe at some point, we might require it because I do believe it is that important to have renters insurance but for now we just strongly advise our tenants  

Jun 29, 2018 10:51 AM #14
Rainmaker
3,269,306
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hi Jon JK- - -this is a smart and well-written post that should be read by all landlords and tenants in my opinion. 

Jul 05, 2018 03:26 PM #15
Rainmaker
1,285,871
Jon Kolsky
Kolsky Realty & Management - Long Beach, CA
Licensed California Real Estate Broker

Michael Jacobs ~ MJ... I hope you're well. We need to grab a lunch soon and catch up. Anyway, thanks for the comment! I agree -Landlords and tenants should truly understand the benefits of protection by way of affordable renters insurance

Jul 06, 2018 09:56 AM #16
Rainer
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Tonya R. Taylor
SavvyBizBuilder.com - Columbia, MD
Tell me 1 thing you want to learn about marketing?

Years ago when I was a renter this was a requirement. Anything can happen with so many people living in one building. And it's not that expensive a couple less latte's a month would pay for it. 

Oct 23, 2018 03:33 PM #17
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