Renters insurance is important for residents, rental property owners, and San Diego property management companies. It’s an extra layer of protection that benefits everyone, and it’s extremely inexpensive for your renters.
Today, we want to talk about why we require renters insurance at Mercer Properties, and why it’s something that all local landlords should require from their tenants and their San Diego property managers.
Renters Insurance Protects New and Existing TenantsRenters insurance is essentially a product that serves your tenants. When you own a rental property, everything that belongs to you is covered by your own insurance policy. However, the personal property and belongings of your resident are not covered by your landlord insurance. They need their own policy, and this is why we require it. We want our residents to protect their expensive electronics and treasured possessions.
Tenants are usually surprised to find how inexpensive a renters insurance policy can be. For basic coverage, the cost is rarely more than $15 per month. If you encounter a tenant who bridles at renters insurance, compare it to the insurance they pay on their smartphone or their car. It’s necessary and it’s worth it.
Without renters insurance, the tenant is left uncovered if there’s an emergency or a catastrophe.
Renters Insurance Helps Landlords Protect Their InvestmentLandlords don’t need the conflict and the disputes that can arise when it’s time to file an insurance claim or fight for reimbursement. If a resident’s property is damaged while they live in your home, you aren’t legally obligated to repair or replace anything that gets destroyed. That’s why renters insurance is required.
But, if something goes wrong with your building or something unexpected happens inside the home, it’s not unheard of for tenants or their guests to sue you for damages. This is California, and we never know how a judge will rule. Renters insurance protects you from extra risk and liability.
Renters Insurance Serves San Diego Property ManagersA San Diego property management company that cares about protecting your rental property should require renters insurance of your tenants. When all parties have insurance, accidents and issues can be easier to handle. There are fewer disputes and conflicts, and more resources when tenants need to be relocated or there’s a loss of rent or a loss of use.
When an owner or a tenant lacks the proper insurance, property managers have extra work, and as the owner, you have additional hassles. That’s not good for anyone. Make your life easier by requiring everyone to have the proper insurance.
It’s not always easy to enforce, but we recommend that you don’t hand over any keys until you’ve seen a tenant’s proof of insurance. You can also have your local property management company include themselves as an additional interest on the policy. It doesn’t cost anything extra, and you’ll be informed if the tenant cancels the policy or allows it to lapse.
If you have any questions about the value of renters insurance and why it’s part of our San Diego property management plans, please contact us at Mercer Properties.