As a landlord in Maryland, you want to do everything you can to protect both you and your renters and reduce your liability. However, accidents do happen. In events where the renter’s personal items have been damaged, they need to have a renters insurance policy.
Renters insurance is an affordable way for renters to protect themselves—and you—from liability. These inexpensive policies can cost as little as $15 per month and give everyone peace of mind. If you don’t require renters insurance for your tenants, here’s why you might want to consider adding it as part of your lease agreement.
Reduce Your Liability in the Event of Property Damage
Should your rental property be damaged by a flood or fire, renters insurance will cover the cost of your tenant’s damaged items. Without such a policy, tenants could hold you, the landlord, responsible for the damage and the cost to replace their items.
Renters insurance in the event of a natural disaster or other property damage can protect you in another way. With the cost of replacing their items covered, tenants will still have enough income to continue paying rent even after such an accident, rather than claiming they can’t make the payments because they have to replace their things.
Some renters insurance policies can even cover property damage due to a tenant’s negligence, such as not properly using appliances that caused a flood, further reducing your liability and preventing the need for you to file a claim.
Protect Both Renters and You If Someone Is Hurt
You can also require that the renters insurance policy your tenants get cover medical expenses if someone is injured on the property. Such a policy can protect you from being sued, whether or not the person was hurt due to any fault of your own.
Not only does a policy of this nature reduce your risk as a landlord in Maryland, but it also can keep your insurance premiums low as you won’t have to file a claim and seek coverage for such incidents as an injury on your property.
Get Damage to Additional Units Covered
Things happen, such as forgetting to turn the dryer off or leaving a faucet running, which can cause problems to your tenant’s unit as well as the neighboring units. Should your tenant be responsible for damage that impacts other units in your building, a renters insurance policy can cover the damage.
Instead of holding you liable for the damage, other tenants can get their damages covered through the responsible tenant’s insurance policy, saving you money, hassle, and potential litigation.
Cover Expenses for Housing for Displaced Tenants
In the event that something happens to your rental property that makes it uninhabitable—such as a gas leak, a broken heating system in the middle of winter, or even a fire—you are typically required to provide your tenants with housing while their home is being restored.
Since housing for displaced tenants can become very expensive, a renters insurance policy can help cover these expenses, reducing your obligations and ensuring your tenants are taken care of while you have the issue repaired.
Update Your Lease to Require Renters Insurance
Renters insurance gives you more peace of mind and reduces your risk as a landlord, not to mention minimizes hassle if something happens. Update your lease to require renters insurance, and let tenants know about the change—it could just save them and you a significant headache.
Have questions about tenant insurance policies as they relate to your liability as a landlord or about how you can legally update your lease? Contact FAS Management today at (202) 337-5080.
