Property Management-Tarzana
Tarzana Property Manaement
Winnetka, Chatsworth
Canoga Park
Renters Insurance by Mark A. Schneider
Having an investment property can be a great return on investment. But on the contrary, you do have the management aspect. This can include maintenance, leases, insurance and etc. One of them being your insurance policy. In this blog were going to cover why your tenants should have renter’s insurance, or better known as a homeowners policy number 4.
What Is Renters Or Tenants Insurance or Known As A Ho-4?
A HO-4 policy, also known as renter’s insurance, covers only the tenants interest. This includes the following coverage,
- Personal Property
- Medical Payments
- Loss Of Use
- Personal Liability
- Other Coverages are available
So Why Should I As Landlord, Require My Tenants to have Tenants Insurance?
To avoid any legal problems or losses from your tenant. A Renters Policy has a personal liability built in. If your renter were to encounter any legal problems or losses, she/he is covered. Here are some examples of what could happen.
-A renter invites a guest over and they slip and fall on the premises.
-They could accidentally start a fire in the premises.
With renters insurance, any type of law suits, or premises losses are going to fall on their policy. If your renter does not have insurance, you as a landlord are going to have to use your own policy. Requiring your renter to have insurance can avoid huge headaches in the event of a loss or legal problems. The last thing you need to deal with as a landlord is getting sued for one of your tenant’s actions. In additon if a loss does occur on your policy, chances are your premium is going to increase on next renewal.
How much personal liability coverage should your renter have?
All you should be worry about on your tenant’s policy is their personal liability. I would recommend a $300,000 liability requirement and it costs the tenant $15.00 – $30.00 per year extra. This for the most part will cover most law suits that a tenant could encounter. This for the most part covers the average cost of a dwelling or condo if were to completely burn to the ground. If you feel that this will not be sufficient, your renter could go with a $500,000 personal liability or higher.
How much does Renters Insurance cost my tenant?
Depending on how much coverage the tenant decides to go with besides your liability requirements, it can run as low as $80 per year all the way up to $300. A lot of this depends upon the renters credit, previous losses, and how much other coverage they decide to buy and etc.
How do I get Proof Insurance As A Landlord?
You should get a Certificate of Insurance or Coverage Confirmation from the company or agent writing the insurance policy. I would also recommend getting listed as an additional insured on the policy if possible. That way you are always getting notified on any major policy changes, but mostly if the policy is being cancelled for any reason. Just like the insured, you get a policy packet in the mail with detailed coverages, and notifications just like the tenant would.
