Whether you are the landlord of one apartment or ten apartments in the Plymouth, MN area, it is critical that you require all of your tenants to maintain a renters insurance policy. However, not all insurance policies are created equal, and it is essential to look for specific coverages and limits. In addition, you want to make sure any insurance requirements are explicitly spelled out in the lease agreement.
One of the first things you want to look for when reviewing your potential tenant’s renters policy is the limits. You want to make sure the renter’s insurance limits are equal or greater than the amount of your deductible. If your liability policy has a $100,000 deductible, you will want to require the tenant to carry at least $100,000 in limits. By requesting this, you reduce the chance of there being a gap in coverage between the tenant’s policy and your own.
If you have a tenant that has dogs you want to check the policy to confirm it provides coverage in the event the dog bites a third party. Insurance claims arising from dog bites are incredibly costly. If your tenant’s insurance does not have this coverage, you may find yourself on the hook as the landlord. If you are unsure if your tenant’s policy has this coverage, please reach out to your insurance expert at Anchor Insurance Agency LLP.
Another critical coverage to look for is coverage that will assist the tenants with accommodations in the event they have to move out of the rental for repairs. This will give the tenant peace of mind while the repairs take place and give you the time needed to have the repairs completed professionally.
If you are a landlord and are interested in learning more about renters insurance, please reach out to a specialist at Anchor Insurance Agency LLP to discuss. We proudly serve the. Plymouth, MN area.