What is renters insurance and why is it important for your tenants to have it?
Renters insurance is the insurance your tenants get to protect them from any losses or hotel bills they may have to cover.
If, for instance, you have a termite problem or a water leak and you need to move your tenants out for a bit to make some repairs, they’ll likely have to stay at a hotel, and they’ll use their renter’s insurance policy to pay for it. Or, if one of your tenants has some type of accident that damages your property, they’ll use their renters insurance to cover that too.
At Hawaii Pacific Property Management, we require all of our tenants to get a minimum coverage of $50,000 in liability and $10,000 in loss. For tenants who have a pet that’s considered a “dangerous breed,” we require $100,000 worth of coverage.
This is mandated to protect you, as well. As I’ve said before, there are two reasons for us to be in your house: to protect your property and put money into your account. Getting renters insurance from tenants keeps money in your account.
If you have any more questions about renters insurance, I advise that you contact your insurance carrier. If you have any more questions for me, feel free to give me a call or shoot me an email. I’d be happy to help you.