As a rental property owner, you’re responsible for protecting your investment and providing tenants with a safe and pleasant place to stay. While no one can predict accidents, one way of minimizing risk is to require renters insurance.
Renters insurance protects tenants’ personal belongings in the event of damage and theft, and provides other liability coverage. This could include situations like:
Many landlords require that tenants show proof of renters insurance within 14 days of the lease start date. This encourages tenants to protect themselves and avoid financial burden in the event of lost, stolen, or damaged property or injury.
Not only is it a good idea to protect yourself and your tenants from risk, but renters insurance also serves landlords in other ways. For one, it can help lower landlord insurance premiums. When a tenant has coverage from their own plan, there may be fewer claims against the landlord’s own insurance in the event of damage.
Renters insurance also reduces liability for both you and your tenants in the case of accidents or injury. If something goes wrong on your property and a guest is injured, for example, renters insurance helps cover the damages and legal fees up to the maximum liability coverage.
It can also simplify the tenant screening process. If a renter is against purchasing renters insurance or says they can’t afford it, this signals that they might not be a good fit. Landlords should consider other tenants who are protected with renters coverage.
While requiring renters insurance is mutually beneficial to you and your tenant, be sure to consider state or local regulations around requiring renters insurance. Most states can require renters insurance under the lease, but others have stipulations. For instance, in California, landlords of subsidized properties may not be able to require renters insurance. Similarly, tenants in Oregon cannot be required to obtain renters insurance if they earn 50% or less of the median area income, or live in subsidized housing.
When you add a tenant to a property and add a lease, there will be a toggle at the bottom where you can require renters insurance.
After you’ve required renters insurance as part of an existing or new lease, your tenant should see a prompt on their dashboard.
Renters will then have the option to either purchase a policy via Azibo or enter an existing policy manually.
Once your tenant has either purchased or uploaded an existing policy through Azibo, their active renters insurance policy will be reflected in the Tenant Information section.
Beyond protecting your finances, renters insurance can help you reduce potential claims in the future. At a relatively low cost, renters insurance provides both tenants and landlords with peace of mind.
With Azibo, landlords can provide tenants a simple way to purchase renters insurance, and can easily see whether or not tenants are compliant with renters insurance requirements. Built for landlords, our platform helps you save time, stay organized, and provide protection for both your tenants and your real estate investment.
Ready to minimize risk and maximize protection? Take action on renters insurance with Azibo.