Too many renters think they don't need liability protection because they rarely have guests or believe that the likelihood of someone being injured in their home is almost non-existent. It is a good idea to require renter's insurance so that you are not responsible for a tenant's belongings and do not have to deal with a tenant trying to get you to reimburse them if their personal property is damaged. Therefore, simply notifying your tenant of the obligation to take out renters' insurance can lead to misunderstandings and non-compliance. Renters' insurance policies are also customised, so the amount of coverage required will vary from tenant to tenant.
However, even if a tenant has no personal property, the other features of the coverage make renters insurance worthwhile. By partnering with Sure, an insurance technology company that offers innovative solutions for the needs of both renters and property managers, you can notify renters of their insurance obligation and help streamline the process of finding and obtaining coverage, directly from the RentSpree platform. Now that you know how renters insurance works in California, it's time to find out how renters insurance differs from landlords insurance. Landlords can make renters insurance mandatory to limit the risk of being sued by tenants for personal property damage or liability costs.
While renters insurance can minimise landlord risk, it does not actually offer financial protection to landlords. Anything you can do to streamline the process of finding and obtaining renters insurance will go a long way toward ensuring that your tenant meets this requirement. When deciding how much renters insurance is sufficient, the main decision you will make will be to establish the limits of your personal property coverage and your liability coverage. Just as renters insurance is financial protection for your tenant, landlord insurance covers your building and your property.
The good news about renters insurance is that it's more affordable than you might think; in fact, it's one of the most affordable types of insurance you can buy. Here are a few examples that show that renters insurance is generally a worthwhile purchase and well worth the investment, whoever you are. Common risks such as fire, smoke, vandalism and theft are covered in a renters insurance policy.