Renters insurance benefits the landlord by protecting them from lawsuits and clarifying who pays for what in the event of a disaster. When misfortune strikes, a tenant may incorrectly assume that their landlord’s homeowners or landlord insurance will cover them. When a tenant is covered by renters insurance, these misunderstandings are far less likely to arise.
Below is a table that lays out why your tenant purchasing any amount of renters insurance benefits you as a landlord:
|Type of Renters Insurance Coverage||Benefit for Landlords|
|Personal Property||If your tenant loses their items due to a covered peril, they’ll be less likely to assume that you’re responsible for replacing them.|
|Personal Liability||If someone gets injured at your property, your tenant will be less likely to assume that you’re also liable in the event of a lawsuit.|
|Loss-of-Use||If your home is uninhabitable due to a covered peril, your tenant will be less likely to assume that you need to pay for their hotel stay.|
|Medical Bills||If your tenant's guest gets injured at your property, your tenant will be less likely to assume that you need to pay for the medical bill.|
To ensure that their tenants have the required coverage, landlords often ask to be listed as an additional interest to the policy. This is also a common way for tenants to show proof of renters insurance.