Renter’s Insurance: What does the landlord need to know?
Hi, welcome to another tips for landlords and property managers video sponsored by Fast Evict Law Group.com. In today’s episode, we’ll go over what you need to know about renter’s insurance. Please remember, the contents of this video shouldn’t be considered legal advice. Please contact us if you have any questions.

According to the Independent Insurance Adjusters & Brokers of America, about two thirds of residential leases in the United States don’t have a renters insurance policy. Landlords should make it a top priority to help their tenants understand how important, easy and inexpensive it is to have a policy.
What does renters insurance cover?
Renters insurance covers (most) of everything else the landlord’s insurance doesn’t cover. A landlord's insurance policy typically only covers the building and damages due to negligence.

Most tenants own, on average, $35,000 worth of stuff in their rental unit. Go ahead, take a few minutes to quickly add up your furniture, your laptop or computer, your phone, tvs, clothes and other gadgets. Would your tenant have the cash to replace it all in case of a disaster?

Most policies also cover temporary relocation in case the rental unit is deemed uninhabitable due to a natural disaster or major accident that needs repair.

Depending on your type of coverage, your personal items may also be covered in case of personal property theft during a break in.

What doesn’t renters insurance cover?
As mentioned above, it mostly covers a tenant’s personal items. When your tenant purchases a policy, they are asked to make a detailed list of the items they would like covered. Here are some examples of some things that might not be covered or situations where the items might not be covered:
In case of flood or an earthquake.
Home business items.
Certain computers, firearms and heirlooms.
Liability if someone is injured in your home.

Make sure you emphasize to your tenant that supplemental insurance exists and an agent may be able to help them create the perfect policy for them.
How much does it cost?
According to IIABA, the average cost of renters insurance is $12 a month for up to $30,000 in personal property coverage.
Can I force my tenant to have a renter’s insurance policy?
Landlords in California are allowed to require their tenants to carry a renters insurance policy during the lease. Landlords typically enforce it by adding a clause to the lease where the tenant must provide proof within X number of days of signing the lease.

There are many benefits of requiring renters insurance such as:
Liability - avoid liability claims from tenants due to major damage caused to the tenant’s personal property.
Relocation Expenses - a renters policy may help cover costs of hotels and other temporary housing arrangements due to fires, etc.
Personal property protection - a tenant might sue you if their unit is broken into and loss of property occurs. A renter’s insurance policy helps cover these losses.

Have you had issues requiring tenant’s insurance? Tell us about it in the comments. Please like, share and subscribe if you have found this video useful. Thanks for watching, we’ll see you on the next one!

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