1. Protect Owner's Investment
It is expected that at some point during tenancy, there will be damages caused to your property protection for your investment, we recommend requiring all tenants to obtain liability coverage of $100,000 to ensure that when an accident occurs such as the washer overflowing, a clogged toilet overflowing, or trampoline flying into a window; the obligation of the damages is covered by the tenant, and you as the owner are not stuck paying large expenses that are not your responsibility.
2. Protect Tenant's Investment
We understand that accidents happen! We also understand that many times these situations result in large expenses, and at times put tenants out of their home for a period of time. To ensure that the tenant is covered when an incident that causes damage to the home occurs; we require liability coverage. Many times, liability coverage will cover the expense of the repairs and help cover costs of temporary relocation if required. Extra support and reassurance are always comforting when the unexpected hits.
3. Avoid Disputes
Why place the burden of determining responsibility on yourself or the tenants? Rely on the insurance company to review and assess the damages, the causes, and determine where the responsibility lies for you. Leaving these difficult decisions to a mutual, third-party, helps ensure that your professional relationship with your tenant remains a good one!
4. Avoid Debt
Being able to avoid putting a large financial burden on the owner or the tenants can help ensure that other necessary financial obligations of each party are more easily met; rent money isn’t being used for maintenance costs and mortgage money isn’t going towards large vendor bills. Relieve yourself and your tenants of unnecessary stresses; require liability coverage and trust that the bills will get paid without the blame.
5. Security
A lot of the landlord and tenant conflicts revolve around reimbursed expenses, specifically in how to manage payment arrangements and past-due balances. To avoid falling into a dispute, it’s best practice to require tenant liability insurance of at least $100,000 in coverage.
Bottom Line
It’s essential to prepare for the unexpected! Tenant Liability Insurance will ensure you have one less thing to stress about during the maintenance process. Should you require expert support in managing your rental home, including processes that ensure renters insurance is required, tracked, and properly used, Alliance Property Management can do it for you!
