Today, we are talking about landlord and tenant insurance policies, and what is required to adequately protect yourself and your investment.
In our management agreements with property owners, we require that the owner or investor carry at least half a million dollars in liability protection. If you can afford more, we always encourage more insurance because when it comes to your property, there is really no such thing as being over insured. We also ask that you list our company as an additional insured. This is helpful in the event that you are not available, and you’d like us to start an insurance claim for you. Perhaps we have to process a water damage claim or get the paperwork and inspections rolling on something else; when we need to do this, it’s easier for us to manage when we are listed on your insurance policy.
For our tenants, we require renters insurance. At the time of lease signing, we explain to the tenant the necessity and importance of renters insurance. It protects us, it protects the owner and it certainly protects the tenants and all of their personal belongings. Our tenants are expected to have a policy with adequate liability coverage, and they must also list our company as an additional insured as well. This offers great protection to the landlords. I can remember a tenant who was a hobbyist and took a special interest in remote control cars. On one hot Las Vegas summer day, the car was on its charger in the garage, and the whole garage caught fire. That fire caused about $50,000 in damages and fortunately, the tenant carried renters insurance. They were able to pay for the garage and they were also able to move into a hotel, where they stayed while the repairs to the garage were being done. This is an example we often share with tenants and landlords to illustrate the importance of having insurance.
These are the two most important types of property insurance that a landlord and a tenant can have. Please take note of your insurance policies, and make sure you and your tenants are covered. If you have any questions, or you’d like more information about liability and renters insurance, please contact us at Ravago Group Property Management, and we would be happy to answer your questions.