A tenant carrying active renters’ insurance in Pittsburgh, PA, is a rare sight. Many renters obtain insurance only because their landlord mandates it, then cancel it after they move in; this is unfortunate. Renters’ insurance protects the people and belongings inside the rental property. However, it also covers the landlord.
How Renters’ Insurance Protects the Landlord
The primary reason landlords want renters’ insurance is to ease their liability risk. For damaged or stolen belongings, most tenants will call their renter’s insurance carrier instead of suing the landlord. For tenants who sue their landlords, the policy limits the landlord’s liability, requiring tenants to seek compensation from their own insurance provider. The landlord also bears no responsibility to an injured guest if the person tries to sue them for compensation. The liability section of renters’ insurance covers the medical bills and costs for the injured guest.
Other ways renters’ insurance is beneficial to landlords include:
- Temporary housing and relocation living expenses after weather or fire damage
- Coverage for injuries to a person or another pet caused by the tenant’s pet
- Damage to rental property (assuming the tenant in question has appropriate coverage)
Tenants with renters’ insurance appeal to landlords because they have a greater chance of paying their rent on time. Tenants who secure renters’ insurance without fuss may be cooperative and compliant. However, it’s crucial to reserve judgment as those traits don’t apply to every tenant.
How Landlords Can Require Tenants to Get Renters’ Insurance
Adding renters’ insurance as a requirement in your lease is the fastest way to inform tenants. To prevent tenants from canceling coverage, include a clause stating that their lease will end unless they confirm their insurance is active each year. Landlords can partner with Stalwart Insurance to provide tenants with a reliable company to contact for renters’ insurance.
Renters’ insurance is a type of home insurance for tenants, but it also benefits the landlord. Our Stalwart Insurance team offers renters insurance for tenants who meet your lease requirements. Contact our Pittsburgh, PA office for more information.
