Do you require your renters to have Renters Insurance?

by sctybear » Wed Jun 19, 2013 03:55 pm

This is more of an informational post that a question.

As a property claims adjuster who has handled 1000's of losses, one of the most common questions I get from insureds is "will my policy pay for my tenants to stay in a hotel due to a covered loss?". That answer is NO!

Most people believe that because they have a Landlord type policy that it will cover their tenants as well. If you are a landlord and you rent a home to tenants they are not a named insured under your policy and their personal items and losses are not covered.

This is where a renters policy comes into play. Many people think that renters policys are only required if you rent an apartment. Not true. If you have tenants renting your home, it is best to require them to obtain a renters policy so this will cover their personal property as well as the additional living expense that may be the result of a covered loss. To make it even easier, ask them to obtain the policy from the same carrier as you have.

I have seen some landlords include it as part of the signing agreement so that if something did occur that the tenants can not come back and argue that they need to pay for their hotel.

What about loss of rents though? Most policies have a provision for Loss of Rents which you can make as a named insured. This will require documentation that you are not requiring rent during the time is unlivable a copy of the rental agreement between you and your tenants.

Hope this helps!

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