It’s finally springtime! But warmer temperatures can invite stormy weather, or worse, thieves attracted by windows opened to catch spring breezes. Renters insurance can safeguard you against destruction/loss caused by natural disasters, theft, and other covered damages. Offering coverage for things like pet-damaged apartments or fires also benefits property managers by saving you time, expense, and liability.
Despite the mutual benefits associated with rental insurance, some properties don’t require their tenants to carry this coverage. Property managers may fear losing renters who are turned off by the idea of paying for a service they may never use. But by helping your residents understand the importance of renters insurance—and ensuring they have the right kind of coverage—you can protect your tenants and property when disaster strikes.
Why Is Renters’ Insurance Important For Property Managers?
Rental insurance does more than just protect your residents; it saves you time, maintenance effort, and repair costs, while avoiding potential liability claims. Requiring this type of coverage can help:
- Mitigate risk for property owners. Since renters’ insurance typically provides liability protection and coverage for personal property, requiring tenants to hold renters insurance can mitigate the threat of a lawsuit.
- Cover relocation expenses. In the event of a disaster or fire at one of your communities, the burden to cover temporary housing would fall on the rental insurance company, not your company. This enables property managers to focus on cleanup and construction efforts without also having to cover the cost of a tenant’s move into short-term housing.
- Screen potential tenants. Requiring proof of renters’ insurance can be an indicator of a potential tenant’s ability to pay rent on time.
How Can You Ensure Your Residents Have The Right Coverage?
Given how rental insurance safeguards your units and community, it’s imperative to require your tenants to have it. And to truly protect your property, it’s crucial to ensure your residents have the right kind of coverage.
Student renters have different needs than renters of manufactured homes, and so on. Empower your tenants to obtain the right coverage so if the worst-case scenario happens, they are taken care of. Some insurance providers protect property managers from uninsured residents by deflecting resident-caused damage away from the property managers and onto the renter’s policy. You can work with a number of insurance companies directly from Rent Manager through our Integrations Program. For residents wary of the cost of coverage, many policies offer discounts for 55+ residents, to tenants with good credit, and for renters who utilize security systems.
No one expects to be robbed or have their possessions destroyed by a natural disaster. Being prepared with the right coverage can make recovering from the unexpected much easier. By protecting both residents and properties, rental insurance coverage creates safe, stable communities for everyone.