Should You Require Renters Insurance at Your Rental Property?

In the state of Colorado, there is no law requiring tenants to have renters insurance. However, there is a law stating that tenants must pay for any property damage or bodily injury that is caused while living in your rental property. Even though there is no mandate for renters insurance, many landlords elect to require coverage as a condition in the lease.

Renters Insurance Does Not Only Benefit the Tenant

While it might seem like renters insurance benefits the tenant, it also greatly assists landlords. It decreases the likelihood of conflict if the property is burglarized or an accident happens and tenant property is damaged. It also lowers the risk of pet-related damage at your rental property, as the renters insurance policy should also cover that. Ultimately, it gives you the peace of mind that, if something happens to your rental property, there will be a source of funds to pay for making things right again.

Renters Insurance Protects Tenants Too

Many renters do not fully understand what is covered by insurance and believe that your insurance policy will also cover their belongings and damage done to the property during their tenancy. However, most landlord policies only cover the building and not personal belonging. Educate your tenants on how renters insurance works when explaining why you require it so that they fully understand why it is beneficial.

How Can You Enforce Your Policy?

If you decide that you want to require renters insurance at your rental property, you should add that requirement to your lease. Ask the tenant for proof of coverage at the lease signing to ensure that they have active and adequate insurance. Then, you can also request proof of coverage at every lease renewal to make sure that they are still paying for the policy and did not merely purchase it for one year instead. In general, you should ask your tenants to have personal property coverage that is adequate to replace all of their personal belongings.

All County Denver Metro Property Management Is the Right Property Management Company for Your Rental Property

All County Denver Metro Property Management offers all property owners competent and honest property management services. From rental market evaluation to tenant placement, we can assist with all of your needs. Our team of real estate professionals looks forward to hearing from you about how we can make your investment a stress-free asset and keep your tenants happy. Call us at (720) 575-6100 for a free quote.

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