Off the top of your head, can you think of a homeowner you know who doesn’t have homeowner’s insurance? More than likely you can’t. If they have a mortgage then the lender who provided the funding would have required them to have it. If anything were to happen to the home the lender’s money would go down with it. It makes sense as it gives everyone involved protection as well as peace of mind.
While homeowners insurance is important to have on your Austin home, renters insurance is just as important if your home is occupied by tenants. Not only does it protect your renters and their possessions in the event of an emergency, but it also protects you – the landlord.
Damages to your tenant’s personal belongings is not covered under your homeowner’s insurance and will leave your tenants liable for replacing everything out of their own pocket. Renters insurance would cover all of this for your tenant and even replace your tenant’s belongings even when a burglary happens in a place other than the home. When you don’t require your tenants to purchase a renters insurance policy this can lead to trouble. If damages to their property happen within their home and they aren’t covered they may try and claim some responsibility for the damage on the landlord’s end.
The important thing about renter’s insurance for your Austin rental property is the liability coverage and the benefits it provides to the owner of the home. Without renters insurance, you could be on the hook for the cost of damages and repairs for your property. The great thing about renters insurance is that it covers the deductible for the landlord’s homeowner insurance which can be a sizable amount. Another added benefit of requiring renters insurance for your Austin rental property is that it can help weed out bad tenants.
If you have any questions about renter’s insurance or how to include this requirement in your residential lease don’t hesitate to contact our Austin property management team.
