It doesn’t matter what part of the country you live, everyone has the same opinion about the weather this year. It has been one crazy year! From snowstorms and wildfires to monsoon floods and the dreaded tornadoes, everyone has been affected by some kind of weather related issue. For the people that are renting their homes, a lesson learned this year has been the importance of renters insurance. Renters insurance can be a lifesaver for those that find themselves in a perilous situation. But the fact is, not many tenants carry renters insurance and its becoming a costly problem.
It is estimated that only 33% of all tenants have renters insurance. Some think they don’t need it because it’s not their home so why should they bother. Sadly, people that have been hit hard by the housing crisis that now find themselves having to rent a home think they can’t afford it, and the reality is they can’t afford NOT to. Tenants and Landlords each have their own responsibility regarding damage to the home and the contents in the event of some kind of catastrophe. The basic rule of thumb is the Landlord is responsible for the structure and the Tenant is responsible for ALL of their content (furniture, clothes, electronics, etc). Sounds simple, but it goes much further than that.
Renters Insurance covers the tenant and their belongings in several different scenarios:
Most policies cover the replacement of the contents and expenses incurred during repair if you are displaced as a result of the damage. This is where Landlords have to pay attention. If a tenant has to move out of the property because of natural damage and they didn’t have insurance, the chances of them returning to their rental are slim. They have to replace all their belongings and find a new place to live in a hurry – which is expensive if they were uninsured. So as a landlord, now, not you not only have repairs to pay for, but also you have a vacant property to rent up again!
Unfortunately, there are no laws protecting the Landlord by requiring renters insurance, however, you can encourage your tenants to purchase the insurance at the inception of the lease. This is where a good Arizona Property Manager can be an asset to you. They will politely explain the benefits of renters insurance from both sides and partner with some of the best Insurance agents in AZ who will help the tenants find a good solution – which ultimately protects YOU, the investor.
Showing tenant you care, not just about the property, but about their wellbeing as well is the best way to forge a positive relationship that will keep both sides happy and settled for a long time. The professionals at KRK Realty in Arizona understand Renters Insurance and are successful at creating positive win-win relationships.
Give us a call today. You will see why so many other AZ Investors chose KRK Realty to handle their property management needs on a longterm basis .
