Insurance claims covering natural and man-made disasters reached $150 billion dollars in 2013. Super Storm Sandy was one of the largest disaster which destroyed thousands of homes in New Jersey area. Good news is that home owner’s private insurance along with government programs help these owners recover their losses. However, for the renters there is no recovery since more than 60% don’t have renters insraunce.
Insurance industry studies show that nearly 100% of rental property owners are insured. But only about 40% of tenants voluntarily purchase renters policies. “I know it’s a good idea,” said a professional property manager responsible for over 300 single-family rental homes. “When new tenants sign their lease, I suggest they get insurance because their personal belongings are not my responsibility,” she said. “But I don’t make it mandatory.”
According to insurance industry the average person renting a two-bed room apartment has over $20,000 in personal property. Considering the replacement cost of an entire wardrobe, a smart phone, an iPad, a laptop computer, flat screen TV, X-Box game console, and even some furniture could quickly add up. In addition to property loss during a natural disaster, tenants can get coverage for burglary and temporary housing due to disaster if they buy renter’s insurance.
So, protect your investments and your tenants possessions by adding renter’s insurance requirements to your rental lease agreements.