2017 holds the highest number of renters since 1965.
In 2016, nearly 37% of all houses were occupied by a renter, and there were no signs of slowing down any time soon. With the increase of student loan debt, employment uncertainty, and a slow trickle of low down payment mortgage programs, renter numbers will be strong for the foreseeable future.
If you own rental property you need to always protect yourself, your property, and your tenants. The more comfortable they feel in the property, the more likely they will want to remain there as long as possible. One of the ways to make them comfortable is by supplying as much protection as possible. Even though you don’t have to, you should explain that the insurance you have does not protect their personal belongings. In the event of a fire, flood, or other natural disaster, the owner’s items would be protected but not necessarily all the items of the renter. By utilizing renter’s insurance your tenant would receive compensation for any items lost. Like any other insurance, you don’t feel the full benefit until you actual need it. Here are three reasons why every tenant should have renter’s insurance:
Protection Of Personal Belongings.There is a big difference in the insurance of a property owner and any insurance for a renter. As the owner, if something unexpected happens that damages the property you are protected for the structure and any items of value. A renter can have thousands of dollars of computer equipment or other technology, but unless they have their own insurance, they will not receive any compensation. A renter does not need their own renter’s insurance, but if something happens they will wish they did. As a landlord, you need to make it clear that you have your own insurance policy that is separate from anything they would obtain. They may not opt to pay, but by suggesting it you can sleep at night knowing you made a recommendation.
Relative Low Cost.When most people think of insurance they immediately think it will cost hundreds of dollars a month. Renter’s insurance is different than auto or homeowner’s insurance in terms of cost. Instead of spending hundreds of dollars a month, you will pay that amount for the entire year. Depending on the items you are insuring, it is not uncommon for a renter’s policy to be under $300 annually. In fact, the average amount in 2016 was around $187 dollars.. For less than $20 a month, it makes sense for a tenant to insure their belongings.
Protection Of More Than Just Belongings.Let’s say that your room is in a finished basement. If a massive rainstorm causes the house to flood you may not be able to live there. Instead of scrambling to figure out how you can afford a place to stay your renter’s policy may cover your hotel bill. It is important to always call the insurer as soon as the incident happens. In most cases, they will reimburse you or even pay for your stay until the landlord resolves the problem.
Ideally, something never happens and you and your tenant have a successful lease. For every ten leases, you may come across one where there is a problem. Mother Nature can be fickle at times, so it is in the best interest of all parties to obtain renters insurance. For the protection gained coupled with the low cost why wouldn’t you get insurance as a renter?