As the owner of rental property, you understand the importance of protecting your financial assets from potential lawsuits and your investment property against intentional or unintentional damage by maintaining an insurance policy, but are the people renting your home taking these same precautions?
When it comes to your tenants, translating the importance and value of this extra expense to protect their personal property against factors such as, accidental damage, theft, vandalism, fires, flooding, or countless other potential variables, is not such an easy task. From our experience delivering property management in Tampa, our team has put together a 4 step guide for mandating renter’s insurance.
STEP 1: PARTNER WITH A TRUSTED RENTAL INSURANCE PROVIDER
Surprisingly, the biggest issue is not getting renter’s to adopt an insurance policy upon signing a lease agreement. Instead, it is ensuring they maintain the policy after they move in. Of all renter’s policies drawn up, 30% are cancelled before the end of the lease agreement. By partnering with a trusted rental insurance provider, you can require that all policies be carried by the predetermined provider. This will allow access to the status of your tenant’s policies throughout their leases.
Another benefit of partnering with a rental insurance provider is having the ability to leverage the referral partnership by way of lower rates for your tenants and first-hand guidance on coverage options. Over time, you will become more knowledgeable of the policy options and procedures, in turn, allowing you to easily translate this information to your tenants upon move-in or when filing a claim to recover damages.
If you’re not sure which insurance company to partner with, speak to your Tampa property management company for information about local providers in your area.
STEP 2: ESTABLISH MANDATED COVERAGE OPTIONS
Take time to sit down with your agent to find coverage options that will provide your tenants with proper protection at a reasonable price. Then, set this as the mandated insurance policy for your renters. If there are no established guidelines, you run the risk of tenants adopting the lowest coverage option available. The primary purpose of requiring tenants to purchase renter’s insurance is to ensure their belongings are covered from damage, making you less vulnerable to legal issues.
STEP 3: EXPRESS THE VALUE AND BENEFITS
After finding a policy option that will work well for your tenants and property type, the next step is expressing the value and benefits to your current and future renters. Pull from situational experience where either a previous renter did or didn’t have insurance and explain what happened as a result. In the end, the people renting your property need to know that intentional damage from theft or vandalism and unintentional damage from an environmental cause or even as a result of their own negligence can and does happen. Ultimately, they need to understand that without a policy in place, their personal belongings are at risk.
STEP 4: SETUP COVERAGE
Policies will most likely go through your actual provider, but that doesn’t mean you can’t make it a smooth process. Start the introductions before the move-in date by connecting your new renter with the insurance agent who will be implementing their policy. This will ensure your future tenant has all the necessary contact information, and ample time to setup their coverage prior to moving in.
Successfully requiring tenants to purchase renter’s insurance begins with finding an agent you feel comfortable recommending to your renters. From this partnership, you will have the knowledge to articulate the benefits of not only retaining, but maintaining a policy throughout a lease agreement. Finally, create an easy experience by guiding your renters through the adoption process. If you are still unsure how to successfully require renter’s insurance from your tenants, talk to a property management company in Tampa.
Looking for an experienced property management company? Call us today at (813) 968-5665 for more information.