Should You Require Renters Insurance At Your Phoenix Rental Property?

Phoenix Rental Property

What is renters insurance?

Unfortunately, most landlords and their tenants still are unaware of the importance that renters insurance offers them.

This insurance policy offers much of the same benefits that a typical homeowner’s insurance policy offers except that it’s specifically designed to offer insurance coverage to the renter and it protects the renter’s personal property from such perils as vandalism, theft and fire.

Renters insurance is important at a Phoenix Rental Property because, the owner is not responsible for ensuring the contents inside their home, condo or townhome, only the structure itself where the tenant is living, so if there is a fire at the rental the tenant may lose all of their personal belongings and have no way to pay for the replacement costs if they are not insured with renters insurance.

What Exactly Does Renters Insurance Cover?

A renter’s insurance policy will cover everything that a tenant owns inside the Phoenix Rental.

What’s really excellent about having a renter’s insurance policy is that the average policy will cover up to $20,000 in personal property and this form of insurance will also provide renters coverage if their personal belongings are stolen from their backpack, suitcase or the trunk of their rental car or hotel room anywhere in the world.

Personal Liability Protection

In addition, one of the most important reasons that GoldenWest demands that Tenants have renter’s insurance is because of the Liability protection it can offer to the property owner.

Let’s say that a tenant has a party at their Phoenix rental property and somebody was hurt during the course of that party. Even though it may have been an accident, the individual who was injured may consider filing a law suit. Having renter’s insurance policy will also provide the tenant with personal liability coverage to handle legal and medical payments for the injured individual up to a certain dollar amount depending upon the type of their renters insurance policy.

This is important because if the Landlord, as the property owner, is named by the injured party in a lawsuit, the Landlord will be in much better position to seek and recover expenses from the Tenant by going after the Tenant’s insurance company.

Property Damage Protection

Another benefit of having a renters insurance policy is that this form of insurance protection will also protect the tenant if they accidentally damage the property (often times including fire and water damage) that they are renting.

Helps after Disasters

One thing that most people never think about is how they will be able to survive financially following a fire, flood, or natural disaster at their rental property. Thankfully, renters insurance also provides renters with financial help when there are additional living expenses due to damages at the rental that have made it impossible for the tenant to live in the Phoenix Rental Property. This loss of use coverage will provide the tenant with the money that they need for additional living expenses and relocation expenses up to a certain dollar amount.

Renters Insurance Q & A

Q – How much does renters insurance cost?

A – Renters insurance can cost as low as $25 per month depending on the company and coverage that the policy offers, there is no upfront cost to get stated, and renters can expect to pay a deductible of $500 to $1000.

Q – Do landlords have to maintain their homeowners insurance if their renter has a renter’s insurance policy?

A – Yes, landlords must maintain their homeowner’s insurance policies and include a “Rental Ryder” or else the policy may be considered to be null and void.

Q – How much coverage should a Tenant usually have in their policy?

A – A landlord’s main concern is replacement coverage of the property as well as personal liability coverage starting at a minimum of $500,000.

Consult your Insurance professional

Phoenix Landlord’s should consult their insurance provider when deciding to rent their home in order to get expert advice on the best type of policy and coverage amounts…both for them and their Tenant.

Contact Goldenwest Management

To learn more about how GoldenWest Management can ensure your Tenant is carrying insurance coverage or for help with managing your Phoenix Rental Property contact Goldenwest Management today by calling us at (602) 765-4750 or click here to connect with us online.