Tenant Legal Liability

Both owners and property managers want their tenants to have renters insurance, because tenants can cause damage to the property through their negligence. Lets say a tenant causes a kitchen fire, which causes damage to the property and temporary discomfort to some of the other residents. At this point the owner has to file a claim on their property insurance that has a high deductible and will potentially cause their rates to increase. The other option is to file a claim on the tenants renters insurance, which alleviates the claim burden on the property owner. The tenant is liable so they should protect their belongings and be responsible for their negligence.

The Challenge

The above story happens all the time but most of the time the owner is filing a claim on their property insurance. Most tenants do not have renters insurance even if they are required by the lease agreement. Owners and property managers have to spend multiple hours following up and tracking on a tenant’s renter’s insurance policy. Tenants sign a lease and move in without providing proof of insurance and a property manager does not want to evict over renters insurance or the tenant fails to pay the premium and the policy cancels. These are just a few examples of why renters insurance is time consuming and frustrating.

A Solution

Turn risks into rewards. A tenants legal liability program allows the owner and property manager to protect the property by providing the tenant with liability in case of a tenant’s negligence. The owner does not have to worry or spend the administrative resources with a master policy purchased and controlled by the owner or property manager that covers all the occupied properties/units. Tenants are required to have the tenant’s legal liability and pay the cost of the insurance so there is no cost to the owner. The cost becomes a part of the rent. The owner or property manager bills the tenant on a monthly basis.

Benefits