If your tenant happens to have a pet, it increases the risk of property damage or physical injury to a third party. Tenant insurance adequately covers these relocation expenses, providing you with a much-needed financial cushion. There might be an incident where you have to bear the cost of the tenant’s relocation due to property damage.
It is a massive headache and can be avoided entirely for a minimal cost. The ensuing legal expenses would also need to be paid out of pocket for the landlord. However, if a tenant does not have insurance and refrains from paying for the damage caused, you may have to seek legal aid. In addition, if the tenant’s negligence has caused damage to the landlord’s property, the tenants insurance will cover it. Though this may not be the landlord’s responsibility, all legal expenses would be paid out of pocket. Usually, when there is property damage, tenants pursue the landlords to cover it. This is one of the biggest reasons why landlords should make renter insurance mandatory. It has innumerable benefits that can make renting your property less troubling. But as landlords, you can make it a mandatory lease clause for your tenants to have renters insurance. How does Renters Insurance Benefit Landlords?īritish Columbia or any other province or territory in Canada does not mandate renters insurance. A tenant may not get complete coverage for it and may require separate individual insurance. For example, it will not cover a costly/ valuable item such as an antique vase or a precious piece of jewelry. However, the renters insurance does not cover all costs it does not cover all contents inside the property.
Usually, the insurance covers costs related to damage or injury to any third party caused by the tenant or any action arising from the tenants. The insurance also helps cover moving costs, hotel room costs in case the rented property needs repairs. If the tenant is negligent or is the cause of any damage or injury to their belongings or guests, the renters insurance will provide coverage for it. All kinds of personal property or belongings like clothes, furniture, electronics, bicycles, and anything else placed inside the property. Damage against perils like fire, vandalism, theft, certain natural disasters, injury, water damage, and a few others depending on the insurance company. Nonetheless, most of the renters insurance policies usually cover the following: Risks covered, however, may differ per insurer and insured depending on various factors. What does Landlord Renters Insurance Cover?Īny insurance policy, irrespective of its type, provides coverage against the risks included in the policy document. Many landlords are not aware of this insurance, and tenants end up pursuing such landlords to pay for their losses. However, if the lease terms require a tenant to have tenants insurance, it becomes mandatory for the prospective tenant to have requisite insurance cover to rent the property successfully. Is Renters Insurance for Landlords Mandatory?Ī property owner cannot compulsorily ask a tenant to purchase tenants insurance. For instance, some insurance policies for renters in BC start at around $300/year and increase according to content values and liability limits. Renters insurance premiums depend on which area the rented property is in, the content of your belongings, and the liability limit. Thus, it is a wise choice for tenants to avail this insurance. So, they are in no way liable for any loss incurred by the tenants on such property. The landlords’ insurance covers the building only and not the personal property and content of the tenants. It allows tenants to get insurance for their personal belongings when they live on rented property. 
The policy provides coverage against kinds of damages and losses such as fire, theft, injury, natural disasters, and much more. Renters insurance, also commonly known as tenants insurance, is the coverage provided by insurance companies on tenants’ personal belongings.
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