Renters insurance benefits the landlord by protecting them from lawsuits and clarifying who pays for what in the event of a disaster. When misfortune strikes, a tenant may incorrectly assume that their landlord’s homeowners or landlord insurance will cover them. When a tenant is covered by renters insurance, these misunderstandings are far less likely to arise.
Below is a table that lays out why your tenant purchasing any amount of renters insurance benefits you as a landlord:
|Type of Renters Insurance Coverage
|Benefit for Landlords
|If your tenant loses their items due to a covered peril, they’ll be less likely to assume that you’re responsible for replacing them.
|If someone gets injured at your property, your tenant will be less likely to assume that you’re also liable in the event of a lawsuit.
|If your home is uninhabitable due to a covered peril, your tenant will be less likely to assume that you need to pay for their hotel stay.
|If your tenant's guest gets injured at your property, your tenant will be less likely to assume that you need to pay for the medical bill.
To ensure that their tenants have the required coverage, landlords often ask to be listed as an additional interest to the policy. This is also a common way for tenants to show proof of renters insurance.