There’s a lot involved in managing rental properties. You’re pressed for time. But here’s why you may want to take a few minutes to explain to a new tenant the importance of renters insurance.
It’s estimated that only about one-third of renters purchase renters insurance. Many renters don’t realize that they are responsible for purchasing their own insurance to protect themselves and their belongings in the event of calamities such as theft or fire. (Many renters mistakenly believe the property owner’s policy will cover them.) In addition to protecting their belongings, a renters insurance policy also can provide liability protection to your tenants if someone is injured in their unit while they are renting it.
Aside from not understanding they need renters insurance, renters often forgo this important coverage because they think it’s too costly. Did you know that renters insurance is actually fairly inexpensive? The average premium for renters insurance is $187 per year compared with an average premium of $978 for homeowners insurance!