Why Do Apartments/Owners Require Renters Insurance?

[dscurlock]

What is the name of your state (only U.S. law)? AL

Every apartment that I have ever rented has required to have renters insurance....

Why?

Why would the apartment give a crap if I lost my personal stuff?

What is their motive or benefit by forcing me to have renters insurance?
If they did not get something out of this, then why bother or care about this at all....

Thanks

 

[Eekamouse]

So if your rental gets broken into, floods through your own fault, a fire burns the building down, etc. you will have insurance to cover your losses. It sure won't be your landlord's problem if any of those things happen.

 

[dscurlock]

So if your rental gets broken into, floods through your own fault, a fire burns the building down, etc. you will have insurance to cover your losses. It sure won't be your landlord's problem if any of those things happen.

I would think the property owner would already have property/liability insurance....
I always thought renters insurance is just to cover personal belongings....

The reason I ask is because I am getting ready to rent a property, and
I already have property insurance, and she told me your insurance is useless
because no one is living there now, then she also suggested if I get a renter
that I require the renter to have renters insurance.

1: I have use-less property ins because no one is living on the property.
2: agent suggests I require the renter to have renters insurance....

I am confused on why two people need to insure the same property...

i would appreciate if someone could break this insurance down between property owner,
and tenant...

 

[I'mTheFather]

If a tenant damages your property, do you want to take the ding to your insurance, or would you rather have the tenant take the ding to his insurance?

 

[dscurlock]

If a tenant damages your property, do you want to take the ding to your insurance, or would you rather have the tenant take the ding to his insurance?

Can you imagine the ding I would take if the tenant cancels their insurance in the middle of the night?
I can require them to carry insurance, but I can not control if they cancel their policy behind my back....

My gut tells me to continue property insurance, and still require the tenant to carry renters insurance....
Since they would be considered primary residence (living on property) then I would think if any
claims are filed, then it would be filed to their insurance, and I would only file a claim if they
cancelled their policy in the dark leaving me holding the bag...

 

[I'mTheFather]

And your insurance will go after the tenant to recompense.

Wait, do you own the property? Is your agent advising that you carry no insurance?

 

[dscurlock]

And your insurance will go after the tenant to recompense.

Wait, do you own the property? Is your agent advising that you carry no insurance?

Yes, I own the property, and my agent told me my current insurance is useless because the
property/house is sitting empty, but that is not what we are talking about, but if a renter
moves in, then my insurance is still as it was before, all the agent did was add something
to the policy, some type of tenant clause, and I guess this would just let state farm
know that I am not the primary residence, and a renter would be there, and not me.....

1: Do I continue with property insurance?
2 Do I require tenant to have renters insurce?
(If I do not continue my insurance, and they dip in the middle
of the night) then I take the insurance hit....

regardless, as of now, I am told my property/liability is useless
because no one is living on the property....

 

[I'mTheFather]

Yes, I own the property, and my agent told me my current insurance is useless because the
property/house is sitting empty, but that is not what we are talking about, but if a renter
moves in, then my insurance is still as it was before, all the agent did was add something
to the policy, some type of tenant clause, and I guess this would just let state farm
know that I am not the primary residence, and a renter would be there, and not me.....

1: Do I continue with property insurance?
2 Do I require tenant to have renters insurce?
(If I do not continue my insurance, and they dip in the middle
of the night) then I take the insurance hit....

regardless, as of now, I am told my property/liability is useless
because no one is living on the property....

I'm going to step back and suggest that you wait for replies from those more familiar with landlord/tenant issues.

I do believe that vacant properties require additional coverage though, and when you do rent it, you'll still want to have your own coverage.

 

[LdiJ]

Yes, I own the property, and my agent told me my current insurance is useless because the
property/house is sitting empty, but that is not what we are talking about, but if a renter
moves in, then my insurance is still as it was before, all the agent did was add something
to the policy, some type of tenant clause, and I guess this would just let state farm
know that I am not the primary residence, and a renter would be there, and not me.....

1: Do I continue with property insurance?
2 Do I require tenant to have renters insurce?
(If I do not continue my insurance, and they dip in the middle
of the night) then I take the insurance hit....

regardless, as of now, I am told my property/liability is useless
because no one is living on the property....

Yes, you need to continue covering the property. However you would be covering it as a landlord rather than as a homeowner. Yes, your future tenant needs to have renter's insurance. Your insurance would cover the property. The renter's insurance would cover his/her contents and negligence.

 

[Gail in Georgia]

"1: Do I continue with property insurance?"

Yes

"2 Do I require tenant to have renters insurance?"

That's up to you. Many landlords do to avoid the hassles of tenants blaming landlords if their personal property gets ruined and it's suddenly the landlords fault. Renters insurance is incredibly inexpensive.

"(If I do not continue my insurance, and they dip in the middle
of the night) then I take the insurance hit...."

If you have a mortgage insurance is often required.

" regardless, as of now, I am told my property/liability is useless
because no one is living on the property...."

Not necessarily. Often insurance companies do not wish to cover empty rental properties (when adding a new property they will often inquire when the owner expects a tenant to be residing there) due to the risk of the place being vandalized while empty. If it's determined that the property will need extensive work prior to being ready for rental, they will often add what they might call a "construction rider" to the policy to cover it while these renovation/remodeling projects are being undertaken.

Gail

 

[FarmerJ]

Here is a perfect example of why a landlord should require tenants to have a renters policy at the start of the tenancy https://forum.freeadvice.com/landlord-tenant-issues-42/tenant-causes-small-kitchen-fire-343958.html < even if the LL did not run this thru his ins the tenant was clearly at fault. https://forum.freeadvice.com/landlord-tenant-issues-42/tenant-caused-kitchen-fire-387531.html SO again tenant fault and if the damage had been more perfect reason to have tenants carry a renters policy. https://forum.freeadvice.com/landlord-tenant-issues-42/fire-house-am-i-still-obligated-pay-rent-563928.html with this one if the tenants guest had actually caused the fire both LL & tenant were lucky the whole thing did not do alot more damage to the house how would this not be the tenants fault since tenant is responsible for actions of tenant guest. No landlord wants the hassle of having a fire to deal with but when tenants have own renters ins then it covers more than fire like if a rented home is flattened in a tornado and tenant furniture is damaged tenant can file claim with their own ins co. Break ins & theft of personal property again tenant ins policy. LL is not responsible for break ins .

 

[xylene]

You need a policy for a landlord.

You know that insurance for a residential property as occupant resident is WAY different than insurance for a landlord.

You need to speak to a new agent who offers a policy for a landlord.

You also need some review of the basics of landlording, and maybe a professional consultation.

 

[latigo]

What is the name of your state (only U.S. law)? AL

Every apartment that I have ever rented has required to have renters insurance....

Why?

Why would the apartment give a crap if I lost my personal stuff?

What is their motive or benefit by forcing me to have renters insurance?
If they did not get something out of this, then why bother or care about this at all....

Thanks

Then don't rent and live on the street with the stuff you don't give a crap about wheeled around in a shopping cart. No rent, no license fees and no insurance premiums! (Just don't expect to live to a ripe old age.)

 

[Ladyback1]

Then don't rent and live on the street with the stuff you don't give a crap about wheeled around in a shopping cart. No rent, no license fees and no insurance premiums! (Just don't expect to live to a ripe old age.)

Should have read and comprehended the WHOLE thread...the OP would be the property OWNER, not the renter.