Having been involved with rental properties for over five years and helping my own kids when each of them has rented for a season, I’ve had lots of opportunity to recommend rental property insurance and I always do. In fact, I require it in all my rental leases.
There are plenty of advantages to making sure you have rental property insurance when you or your aging parents are renting.
- Protecting your lease. (Many leases require you to have rental insurance. If you don’t get it, your landlord may be able to legally evict you.)
- Your landlord’s insurance company does NOT cover any of your personal property. It only covers the building. And sometimes it doesn’t even cover that – see the next point.
- Your property is protected in the event your rental is burglarized or involved in a fire. (Did you know that if you accidentally cause a fire, your landlord’s insurance company may sue you for the damage caused!)
- Things like laptops and bicycles are protected, even if they are away from your rental.
- It can help protect you in case someone brings a liability lawsuit against you. (For instance, if someone slips in your bathroom, and injures themself, they might sue you!)
- It can save you money for premiums.
You’re probably thinking, “I agree with 1 and 2 but how does 3 come into it? It costs more money for more insurance, right?” Not always!
I had a tenant once who wanted to get a pet. I agreed as long as they added a pet rider to their insurance policy and gave me a copy. Cheerfully, they complied. When I stopped by their house a few days later to pick up the rent check, they were so excited. They told me that by adding the rental property insurance to their car insurance policy, they qualified for a special discount and it actually wound up saving them money while having more insurance coverage. Now that’s one of those great ways to save money that Sandwich Generation landlords and their tenants can both appreciate.