Tenant Insurance Required: Win for Apartment Owners & Tenants

Why are property owners more in need of insurance tenants? It is a need that is mutually beneficial.  

Why do so many apartment communities adopt compulsory rental insurance, and how do tenants feel about it? The answer might be that needs sometimes lead to positive results. 

Economy insurance and liabilities

The trend towards tenant insurance is obliged to start getting steam more than a decade ago.

In 2004, The Wall Street Journal reports that apartment business had seen an average increase of as high as 50% in the price of property and liability insurance. In response, more property owners have begun making mandatory tenant insurance.   

The company's goal is to relieve economic pressure by asking tenants to share more risk and financial responsibility, perhaps getting a break at their insurance level in the process.

At the time, many commercial properties were facing higher prices for terrorism insurance as a result of the September 11 attacks. In addition to the threat of catastrophe that damages property, they also face lasting accountability concerns.     

Tenant policies that cover liability cover can help reduce legal exposure for tenants and landlords - if, for example, a guest sustains an injury to the property.

Share costs and receive benefits   

What makes financial sense for apartment companies in the early 2000s continues to make sense today.

What about the tenants?

Of course, the idea of ​​ownership of an apartment community that provides fees to tenants may not be fair to all parties. However, tenant insurance offers tangible benefits regardless of whether you have a voluntary policy or as your rental requirements. 

In addition to liability protection, tenant insurance can offer content protection if your goods are damaged, destroyed or stolen - something that is usually not offered by owner insurance. And if you think an apartment cannot accommodate enough property to justify the cost of insuring it, consider research that suggests that typical tenants of 2-bedroom apartments have assets worth $ 30,000. 

Cheap tenant insurance. In 2013, the cost of average - the average annual premium is estimated at $ 188, or about $ 15 a month. Average premiums have remained stable for most of the last decade.       

You might be able to save money if you combine tenant policies with your car insurance, so be sure to demand your agent about that option.   

The fact that the estimated number of tenant insurance policies increased from 29 per cent to 40 per cent between 2011 and 2015 shows that more and more tenants are aware of its value, in all respects.

A mutually beneficial solution

Keep in mind that every requirement to rent an apartment has a specific purpose. While the list of prerequisites and procedures has been developing for longer - and arguably more tedious - things that might seem annoying at first can turn into blessings later. 

Don't consider tenant insurance as one more hurdle to overcome. Try to see it as turning a shared need into a shared benefit.