According to a survey by Allstate insurance, 60% of tenants nationwide do not have renter’s insurance. The cost of renter insurance is very cheap, usually $15 to $20 per month, and within the price range for most tenants who are not absolutely destitute. Some landlords are requiring their tenants to carry renter’s insurance because it protects the landlords cash flow. Should a tenant sustain a devastating loss without renter’s insurance, they might not be able to pay the rent. And then the landlord must begin the long and costly job of the eviction process.
According the OC Register, some tenants believe that they don’t need renter’s insurance because they are covered by the building owner’s policy. While the building owner’s policy covers the building, it doesn’t cover theft or kitchen fires. Tenants are arguably liable for “any problem they create” such as a kitchen fire. Even if your landlord doesn’t require renters insurance, it’s valuable for tenants the protect their property and the risk of a lawsuit with renter’s insurance. Renter’s insurance should defend you should someone decide to sue you for slipping and falling inside your apartment or on your balcony. Another little known detail is that renter’s insurance might be able to provide assistance should you be involved in a civil suit, similar to the protection provided by a home owner’s policy. Talk to your insurance broker about the exact details of each policy.
Landlords who require renter’s insurance enjoy the benefits of having tenants who are protected, should a tenant-caused accident occur in the apartment, and it also provides a level of tenant screening, by screening out some tenants who are so strapped that they can’t afford to pay an additional $15-20 per month. If your tenants cannot afford this small amount, chances are they might not be able to pay the rent very soon.
renter insurance
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You make a great point if a tenant can’t afford an additional $15 – $20 per month then down the road they most likely won’t be able to pay the rent. It’s happened twice to me. Here’s a great site to refer your tenants to on Renter’s Insurance:
All Renters Insurance Info.com
It is a small amount but I live in low income housing and most people her, including my family are on section 8 and we can pay are rent and even though that is a small amount we don’t have the extra money to pay for renters insurance but we can pay rent. They shouldn’t do this for low income people or section 8 because we already have a hard time that is why we are on this, we use that extra money to buy things our son needs. Our apartment complex is going to start doing this when people renew their lease.
Wow, just being “served” by my landlord that I must have renters insurance can I just say. FGY!
Your reason is “Landlords Benefits of Renter’s Insurance”. There is only one benefit listed, Peace of mind that i’m protected? Again GFY.
$20 a month is nothing to some people and food to others. You are unreal.
I was involved in a fire 2 years ago where I lost everything I owned – was renting a room in a house from a friend. I unfortunately let my renters insurance lapse because I thought I didn’t have the extra money – people in low income situations are in need of renters insurance maybe more than others – this event significantly hurt me financially and has taken this almost 2 years to recover from – In NC I now have a policy for $83 per year – definitely worth saving for after what I went through.
Renters Insurance is easy to overlook, but provides a great level of security for a small price tag. Another great feature is the liablity aspect, which protects you against lawsuits should someone slip and fall inside your apartment.