So, what’s the deal with renters insurance and why do property management companies make their residents have it? According to Julia Kagan, a contributor at Investopedia, “renters insurance is property insurance that provides coverage for a policyholder’s belongings, liabilities and possibly living expenses in case of a loss event.” A property management company, like Roers Property Management Residential, requires residents of its properties to obtain renters insurance because the team truly cares and wants the people who make their homes with them to have the best possible experience while living in any of their communities. Since none of us can predict if a neighbor might turn their heat off when they head out of town during the winter causing the pipes to burst, or when they might overflow the bathtub or have an accidental kitchen fire. Or even worse situation is if you are the one that has the accident. Renters insurance is a way to protect residents from incurring the expenses that might go along with those unfortunate events.
One of the great things about renters insurance is that it is incredibly affordable and often less than $20 a month. In our experience, most insurance companies will lower the rates, if you bundle other policies, such as auto insurance with it. To make sure everyone is covered, Roers Property Management, requires all residents to be named on an insurance policy, whether they have a joint policy or if you each have your own separate policy. A big part of that is because if only one person is named on the policy and a roommate is responsible for damages within the rental unit, the insurance company will likely not want to cover the damages for someone who is not named as an insured.
The Roers Property Management team members often get questions about whether homeowners insurance policy that their parents or family may have can be extended to the rental unit. You will need to check with the insurance carrier and find out what the best solution will be for you. Some things to consider when making that decision are:
- How an insurance claim might impact the insurance premiums for the homeowner, should a claim need to be filed.
- The cost of the deductible, should a claim need to be filed.
It is important that you don’t make a decision thinking it will save you money while you’re living at the property, when it might cost you more in the long run. Your homeowners insurance premiums may go up due to a claim stemming from a neighbor or because the deductible is so high that it doesn’t make sense to file a claim and now you’re stuck with over $1,000 in out of pocket expenses.
Ensuring that residents have renters insurance coverage is so important to Roers Property Management that our team requires residents to provide proof of renters insurance for all residents prior to moving in. So that means if your roommate is not moving in for a week or two after you, he or she needs to make sure to turn their renters insurance in to management before you can move in too.
While we are not experts on insurance, we’ve seen firsthand how important it is for our residents when they’ve needed it, so be sure to connect with a Property Ambassador about requirements for your rental unit and with your insurance agent on finding the perfect coverage for you.