Encourage Tenants to Buy Insurance

Many tenants choose not to pick renter’s insurance. Their decision could put you at financial risk. Renter’s insurance covers more than just a resident’s personal property. It covers damage the tenant might do to a neighbor’s property or to your property. For example, if a tenant who has no renter’s insurance starts a fire that damages other apartments, you may have to ask your own insurer to pay for the losses. This could mean higher insurance premiums for you.

Although you can’t force tenants to buy insurance, you can take steps to encourage them to do so, say insurance experts. There are arguments you can make to help convince new tenants to take out renter’s policies.

The low cost of this insurance is another selling point tenants should be made aware of with the typical premium running only $150-300 per year.

If the tenant chooses not to buy coverage, the landlord can protect himself by insisting on an addendum to the lease that stresses that renter’s insurance was highly recommended by the management. The addendum should be signed at the same time the lease is executed.