How to Tell Tenants About Renter’s Insurance

Frank Chen

Hi, this is Frank Chen with REIClub.com, the only site you need as a real estate investor. Today I’ve got a quick video on notifying your Tenants of Renter’s Insurance…

As a property investor, you understand the importance of having the proper insurance so you are protected. This is equally important for your tenants and their belongings.

Renter’s insurance only provides coverage for the tenant’s “Stuff” in cases of theft, fire, storm and water damage. Otherwise, NOT covered by the Landlords home insurance.

Why Renters Don't Think They Need Insurance

They don't know it exists
Not a priority due to their history
They think they are covered by the landlord's policies
They think it's too expensive
They don't find a need for it

Educating them on the benefits

It is affordable – $15-25/month
Letting them know Landlord insurance has nothing to do with their personal property
Explain what types of scenarios where insurance would be beneficial to have
Incentive program – if they get insurance, you'll reduce rent by $25-50/month.

Going over costs of rental insurance

Provide tenant with three different places they can call to check coverage and rates.
Insurance agent – referrals
Let them know they can choose what kind of coverage they want and how costs vary – flexibility
Give actual numbers so they know if it's manageable

As a landlord, it is your choice on whether or not you require your tenants to be insured. Whatever you decide, just make sure your tenants know they have that option, and it’s affordability. In the end, it will only mutually benefit, AND, reduce this risk of both parties.

Again, this is Frank Chen with REIClub.com. Please take the time to leave your comments for this video below and please subscribe to our YouTube channel so you’ll be automatically notified when we upload more quick video tips for you. Take care and good investing.