Does Every Tenant Need Renters Insurance?

If you own rental properties in San Diego, Las Vegas, Phoenix, or elsewhere in the United States, one of the most important things you should require your tenants to have is renter's insurance.

Renters insurance is an insurance policy designed specifically for renters, and it protects their best interests.

A renter's insurance policy protects the tenant if the rental property items are stolen or damaged during an 'act of God' incident.  What's even more ideal about renter's insurance is that a typical policy will protect a tenant's guests if they are injured while at the rental property.

Every Tenant Should Have Renters Insurance

In today's world, renter's insurance is a worth investment for every tenant because the policy protects not only the tenant's best interests, but also a landlord's best interests.

With a renter's insurance policy covering their tenants, landlords don't have to be concerned about lawsuits from their tenants or people who may have been injured at their rental property. The tenant's renter's insurance policy will ensure that neither the tenant nor the landlord is liable.

Renter’s insurance, like many other types of available insurance, is affordable. A tenant can choose what they feel is the right amount of coverage for their property and only pay a small monthly premium.

How Does A Renters Insurance Policy Work?

Over the years, there have been many misconceptions about renter's insurance policies. Both landlords and tenants should know fundamental renter's insurance facts.

#1 – Renter's insurance only protects the policyholder.

#2 – If multiple renters are living in the same property, each tenant should have their own policy.

#3 – A typical policy will cover a tenant's expenses if they are forced to relocate due to repairs on their property that are needed following a storm or natural disaster.

In 2021, renter's insurance is not required by law, but landlords have the option to require each tenant carries their own policy as a condition of renting. This requirement serves to protect both the tenant and the landlord.

Contact Golden West Management

At GoldenWest Management, we're a neighborhood property management company that can assist you with all of your property management needs.

If you want to rent your property for top dollar while enjoying the passive income that comes from owning a rental property, contact us today at (866) 545-5303 or click here to connect with us online.