Property managers often overlook the value of renter’s insurance for risk mitigation. It’s easy to discount renter’s insurance, because it is thought of as something that just protect your resident’s personal property. However, renter’s insurance not only protects your residents, but it also protects you and your property. Property managers make a lot of mistakes when it comes to renter’s insurance because they don’t understand the benefits. Here are some of the biggest renter’s insurance mistakes to avoid:

1. Underestimating Your Liability

Beyond just protecting your and your resident’s property, renter’s insurance covers a lot of other issues that you could end up liable for like dog bites or assault. If your resident does not have adequate renter’s insurance and an issues happens on your property, the claimant may pursue your company for damages. You don’t want to be liable for the actions of your residents, so make sure you’re protected.
 
2. Thinking Renter’s Insurance Is Too Expensive

Renter’s insurance costs anywhere between $10-30 a month depending on the coverages and limits of protection your renter chooses. The monthly costs are not a heavy financial burden, especially considering the level of protection you receive. Also you can talk to your insurance company and see if you can get a bundling discount for even more savings. Finally, keep in mind that if an extra $10-30 a month is considered an economic hardship for your residents, that may show they do not have the ability to pay a monthly rent.
 
3. Not Requiring Rental Insurance In The Lease Agreement

Since renter’s insurance also protects you and your property, you should consider adding it as a clause to your rental agreement. By including renter’s insurance into your agreement, then you are ensuring that they are obligated to carry it and you are fully protected. If you are worried this extra cost will scare away potential residents, keep in mind how renter’s insurance actually benefits the relationship. Renter’s insurance protects both of you, so highlight that fact when going over your lease agreement. Also, it is standard practice for property managers to require renter’s insurance, so you adding it as a requirement is not different than your competition.
 
Renter’s insurance protects everyone. It protects you, your property, and all your residents against liability. So make sure you don’t make these common mistakes when it comes to renter’s insurance.