Many renters in the U.S still think that a renter’s insurance isn’t necessary, which is often a huge mistake. This is at least according to an article by Forbes.

Two reasons could try to explain this. One is that tenants are usually under the impression that the landlord’s insurance also covers their belongings. Unknown to them, this is not so.

Landlord insurance only covers structural damage to the home due to any covered perils. Such perils include snow, hail, wind, or fire.

Requiring your Snohomish County, Washington tenant to have a renter’s insurance is certainly worthwhile. It can cover property damage resulting from a covered peril.

So, in today’s post, we are going to look at 7 reasons why you should require renter’s insurance in the lease.


1. Lowers the chance of your own premiums increasing.

If you make too many claims, there is a high likelihood that your own premiums may increase. Your insurance company can even decide to cancel it rather than renew it.

But with renters insurance, you can rest easy knowing that all or a portion of the loss will be covered. As a result, you can help prevent any chance of your premiums ever going up.



2. Protects your tenant’s belongings.

Many tenants make the mistake of thinking that the landlord’s insurance covers their belongings, but it doesn’t!

Tenants’ belongings can only be covered if the said tenant has taken a renter’s insurance. Once they are covered, they can be assured that their possessions are covered, whether or not they are at home.


3. Can mitigate potential disputes.

An adequate renter’s insurance coverage can help ward off potential disputes with your Snohomish County, WA tenant. On the other hand, without coverage, you may leave yourself exposed to potential liability should something go wrong.

If a tenant’s belongings are stolen or damaged – who do you think he or she is going to blame? Of course, it’s going to be you – the landlord!


Remember, as a landlord, you are responsible for providing your tenants with a secure place to reside. So, if something happens, even if you aren’t to blame, you may find yourself dealing with a court battle.

Moreover, court battles can be lengthy, time-consuming, and can potentially leave you financially ruined.

Requiring renters insurance in the lease is the only way to safeguard against such potential disputes.


4. Shows that you are a responsible landlord.

If you are like most landlords, your goal is to make money from your investment property. As such, landlords are often thought of as greedy and mean because all they talk and joke about is money.

However, by requiring renters insurance, it shows that you are concerned about your tenant’s wellbeing and have less of a focus on making money.

It ensures that in case of damage or theft, their losses will be taken care of. The cover may also help handle their relocation costs while they await their home to be fixed.


5. It minimizes the chances of renting to the wrong tenants.

Renting to the right tenant is key to running a successful rental business. One glaring sign that a tenant isn’t a good fit is if they seem reluctant or unwilling to get renters insurance.

Always look for applicants that are ready and willing to insure their belongings. Such tenants will generally be responsible and cause fewer problems for you.


Renters insurance is very affordable, so if a tenant can’t afford one, odds are they will have a difficult time paying rent somewhere in the future.

While there is no problem living paycheck to paycheck, such tenants typically make the most difficult tenants to deal with. Chances of going delinquent among such people is usually relatively high.


6. It covers your deductible.

What happens if a tenant accidentally damages your property? Yes, your landlord insurance policy may come to your aid. However, you’ll be stuck paying the deductible.

The deductible is the amount you pay toward a covered loss before your insurance benefits can kick in.

Additionally, remember that your policy can only cover damages up to a certain limit. So, in the event the losses surpass this limit, you may end up with a large bill to settle.


7. May allow you to be pet-friendly.

According to a survey conducted by the APPA, up to two-thirds of U.S. households own a pet. What this basically means is that landlords who allow pets have a huge tenant pool to work with than those that don’t.


However, it’s important to remember that making your property pet-friendly has its shortcomings. Bites from dogs and property damage, for example, are some of the potential risks you may expose yourself to.

Requiring renters insurance in the lease can help eliminate these potentials risks. That said, not all insurance covers are created the same. The cover may depend on the company, animal type, and the state.

For this reason, make sure to check what your tenant’s renters insurance covers before allowing them to keep pets.


How much is renters insurance?

Considering that over 50% of renters don’t actually carry renters insurance, it’s shockingly little. According to the National Association of Insurance Commissioners, the average renters insurance policy only costs about $15 a month.

There is no doubt now that requiring renters insurance in the lease is beneficial to any serious Snohomish County landlord. With the renters insurance policy, both you and your tenant can rest easy knowing that you won’t be left financially vulnerable in case of property damage.