Talking with tenants about renter’s insurance

Renter’s insurance is secured by and  paid  for by your  tenants and  covers losses to the  tenant’s personal or business property as a result of fire, theft, water damage, or other loss.  As a rental property owner, you benefit from renter’s insurance because it covers any claims in the  event that the  tenant starts a fire or flood. The tenant’s premiums go up rather than yours. This tenants insurance is in addition to the insurance for rental property discussed here:

http://www.buyingrentalproperty.org/rental-property-insurance/

Most commercial tenants have  this  coverage, but  residential tenants often think they  don’t  need renter’s insurance because they  have  few valuables. But renter’s insurance covers much more than just their personal possessions; it also protects against liability claims made by injured guests or visitors. The insurance also offers  supplemental living expenses if the  rental unit becomes uninhabitable due to fire or smoke damage. And it protects the  tenant in the event that the  tenant causes damage to another tenant’s property. You can suggest or even  require that your  tenants carry rental insurance, but  be aware that in some areas your  competitors may not follow your  lead and you may find that you’d have  trouble keeping your  rentals occupied if you insisted that your  tenants carry renter’s insurance.