Written into most lease agreements is a provision that advises the Tenant to carry renter's insurance to protect the tenant from any such loss or damage.  But this suggestion does not often get a follow-up on and may not help fully protect the landlord or tenant.

A reputable and experienced property management company will often present an additional term that requires the tenant to obtain renters insurance and that the landlords be named as an "additionally insured" on the policy. It is also beneficial to have the tenant show proof of such insurance coverage within days of the date of signature of the Rental Agreement.  Protecting the tenant and landlord with insurance is a smart expenditure for peace of mind.

1. If your property catches fire, through no fault of the tenant, the owner's insurance does not cover the tenant's personal property or expenses they may incur while the property is being repaired. Who might they come after if they have no other protection?

2. If your tenants cause their neighbors to suffer a loss, through bodily injury or property damage, their Renters Insurance will provide protection that would compensate the injured party. This protection can prevent arguments over liability between you and your tenant, and who might the neighbors come after if they have no other protection?

3. If someone sues your Renter for monetary damages for some other reason, and they haven't done anything illegal, their Renters Insurance puts Insurance carrier money on the table and as the landlord, you don't need to be involved.

4. Your tenant's personal property is protected (less the deductible) while they are away from home, like in their car, or when traveling. If they lose something that is of value to them they may have fewer resources to pay your rent.

5. They can get cross line discounts on their auto insurance, which will save them money while protecting more of their stuff. Depending on how expensive their auto insurance is, their Renters Insurance might even be FREE! And, they might not even know that! That certainly wouldn't hurt your standing with them!

6. It gives you peace of mind to know that should a loss occur, you won't have to deal with the Renter's loss, and you can concentrate on repairing any damage to your property!

7. Having the funds readily available to replace lost items will reduce the strain on your relationships with your tenants.

8. You will have fewer problems than other Landlords, assuming everything else is equal, so you will have more free time!

9. As the landlord, you can make this a mandatory condition of renting the property, which means you never have to worry about your tenants not being covered, and most importantly...

10. It's very inexpensive and easy to obtain a policy. A typical policy covering up to $15,000 in property damage and $100,000 in liability coverage cost under $200 per year.

Corrin Trowbridge is an Insurance Broker with Farmers Insurance - Trowbridge Insurance in San Bruno, CA.

He specializes in assisting clients to protect their assets.  Corrin began his career in the Insurance Industry in 1983, and has been involved in Insurance, Real Estate, and Financial Services his entire adult life. Mr. Trowbridge resides in Redwood City, with his wife and business partner Virginia, and services clients all over the Bay Area and California.  He graduated from Kenyon College, in Ohio, and has obtained an MBA from the University of Phoenix and the LUTC designation from the American College.

For more information or a free insurance quote contact:

(650)876-9600  |   ctrowbridge@farmersagent.com  |    http://www.trowbridgeins.com