According to a 2016 Insurance Information Institute poll, around 41 percent of renters said they have renter’s insurance. While this percent is not as considerable as homeowner’s insurance, it’s a significant increase since 2011.
Why are more renters buying insurance? Renter’s insurance is beneficial to both renters and landlords. When you require tenants to purchase renter’s insurance, you are acting in the best interests of both yourself and your tenants.
Insurance offers failsafe protection. While some tenants may balk at the extra cost, those with a mind for long-term security will most likely find the price acceptable.
Your property management software can play a role if you decide to require renter’s insurance.A few apartment leasing company offers insurance to safeguard the tenant and the renter. Many platforms support full integration, so you can track who has insurance and when plans expire.
The following overview of renter’s insurance and its synthesis with property management software will hopefully convince you of the benefits of both.
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What is Renter’s Insurance?
Like car or homeowner’s insurance, renter’s insurance protects renters from paying the full price of damages or disasters that might happen to your property. Renters buy the insurance independently and can carry it to each property they rent.
Standard renter’s insurance policies cover damages or lost property from fires, thefts, or accidents. Policies tend to vary depending on the location and environment of the units. For instance, if your properties are located in an area particularly susceptible to flooding or forest fires, the policy will likely reflect the possibility of these disasters.
The cost of renter’s insurance is usually less than renters expect: the average plan is around $15 a month. For this affordable price, tenants usually receive broad coverage.
Why Require Renter’s Insurance?
If renter’s insurance benefits renters, why should you bother requiring it? No matter what coverage they have, your tenants’ policies will also help you.
You probably already have your own insurance plan in place for your properties. Having renters purchase their own insurance isn’t overkill but rather provides direct benefits to you. When an accident or disaster occurs, renters’ insurance will kick in before yours does. This saves you the time and costs of overseeing repairs, providing replacements, and dealing with your own insurance company.
Requiring renter’s insurance also helps prevent litigation if an accident occurs. If a tenant’s plan already covers the damages, that tenant is much less likely to sue you.
For these reasons, requiring renter’s insurance is always a good practice. For a relatively low price, renter’s insurance protects both you and your tenants from unexpected strains.
Renter’s Insurance and Property Management Software
If you’ve decided to require renter’s insurance, it’s time to determine how you’ll enforce and manage your new rule.
The first step is to write the new clause into your lease. You can do this on the lease document already uploaded on your property management software. Landlords’ power to mandate lease terms vary by state, so it’s a good idea to do some initial research. For instance, you might consult your local landlord’s association or ask similar landlords what language they use to require insurance in their leases.
Next, you need your tenants to approve and sign the lease. If you find that renters are wary about buying insurance, remind them of the benefits and variety of plans they can purchase. You can also recommend certain plans based on your location or what previous tenants have found satisfactory.
The last step is integrating renter’s insurance with your property management software. Many software options allow tenants to buy renter’s insurance directly on the platform.
This feature is not only convenient for tenants, but also benefits you. When tenants purchase insurance on the software platform, you can see all the details, track the expiration date, and remind tenants to renew their insurance on time.
Protect Your Business by Requiring Renter’s Insurance
As more landlords decide to require renter’s insurance, there’s no doubt as to why. Renter’s insurance is inexpensive, protective, and practical. By requiring your tenants to have renter’s insurance, you look out for all parties. Plus, integrating insurance with property management software is simple and effective.
Don’t miss out on these benefits. Safeguard your finances and rental business with renter’s insurance, and you will thank yourself when inevitable accidents happen.
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