Landlord House Insurance
Most of the tenants know that they have adequate coverage that insurance is not the responsibility of the owner. It is the responsibility of the tenant to ensure that covered under any circumstance. Most renters believe that is the work of the owner to protect their personal belongings being stolen or damaged are living on their property.
This is a huge mistake by the lessee. The policy strictly property insurance covers damage to listed building as "not negligent" and anything that effects the loss of personal property owner (the owner of the building).
If the tenant wants be fully protected, you should seriously consider renters insurance.
Renters insurance provides coverage for personal belongings of the tenant, and as covering the tenant (also known as liability coverage) only if the tenant is liable for damage to property due to negligent conduct. It also covers a host of injured tenant must be that the guest could hurt the tenant's apartment. And almost all policies cover medical costs if the guest requires medical attention due to an event that occurred in the tenant's apartment.
When paying a claim, the insurance company to determine payment based on whether the tenant has a policy is "actual cash value" policy or policy of "replacement coverage."
The most expensive option is a "guaranteed replacement" policy, since pay the insured what it really costs to replace lost or stolen items (minus the deductible).
The least expensive option is an "actual cash value" policy pays the insured the lost, stolen or damaged property has a value in the time it needs to be replaced (minus the deductible).
But What are the benefits of having insurance buy renters insurance before signing your lease? Well, although your tenant has this Policy Insurance has no effect on the amount of homeowners insurance needed to adequately protect and be protected in their entirety.
As a property manager, you should know that the fact that the tenant has renters insurance does not protect the owner in all cases of potential liability issues. You remain responsible as the owner to maintain the common areas clean and maintained. These areas include sidewalks, stairs and parking area. They will also be responsible as the owner of accidents and damage is the result of negligence does not occur in the above areas. As a homeowner, you should be aware that the tenant is solely responsible for the areas under their control (ie – rental apartment).
Does it make sense for a landlord to require their tenants to have a renters insurance policy? The answer lies in simple economics. If you end up paying for damage that was caused by the behavior negligence of a tenant, it can get expensive. If the tenant is not insured, you may have to raise the rent for everyone in your building that you could do or consider vacating the property. The other option is to put a claim on your homeowner's policy and receive higher premiums in the future.
On the other hand, if the tenant has his own politics, there is a third option to overcome the first two scenarios mentioned above. Why? Because it takes the load you as the owner to come up with the money needed to repair the situation. If you simply keep up with general maintenance of the property (whether costs), which will ultimately save money in the long term. The chances of something happening due to poor maintenance will be low to zero maintenance.
Personally, I keep my buildings as a first class and "suggest" to my new tenants to obtain renter's insurance policy stating the obvious benefits to them as tenants. Without exception, every time I have done this, regardless of whether they have complied or not, who have thanked me for making it clear what that is and is not responsible. Started his tenure with the right foot for both!
Stirling Gardner (The Hollywood Landlord) is a writer and property management expert.
He consults for EZ Landlord Forms and loves it.
EZLandlordForms.com has your state specific lease agreement as well as free rental applications
He highly recommends you check out the site when you get an opportunity. It will save you countless hours, dollars and headaches.
