Consumption and Real Estate
what are the benefits of requiring tenants to carry “tenant liability insurance?
Question : what are the benefits of requiring tenants to carry “tenant liability insurance?
I own a stock-coop apt. at the beach. Recently I have been renting it out through a qualified realtor. It is a valuable piece of real estate. I have decided to require all my tenants to carry
“tenant liability insurance.”
What are the benefits of this?
i actually put it in the lease that the tenant must show proof of the insurance before they move in!
what I am looking for is that is someone like their maid or a houseguest should do a “slip and fall”
that their insurance would pay.
tenants insurance
Best answer:
Answer by pat_luey2000
it”s a good idea for everyone to have it, ours sure has paid off and glad we have it, not expensive either and umbrella insurance is also affordable, about a hundred a year.
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#2 written by mbrcatz17 1 year ago
Well, minimal benefit to you . . it’s a layer of liabiltiy between someone who’s suing the tenant for something that happens while it’s rented. It’s not like YOU can collect under THEIR liability policy, under most cases.
What’s better is, it’s highly unlikely that they’d carry JUST liability – but also PROPERTY coverage for THEIR property, which is what you REALLY want. Because then if something happens to their property while it’s at your place, they’ll have a place to collect besides suing you.
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Having your tenants carry Renter’s Insurance is always a good idea. The point is that you want to take as much of your liability as you can and transfer it away from yourself. Ultimately, you are responsible for all “slip and falls” on your premises, however, if it happens in one of your tenants’ apartments, their liability insurance would be primary, meaning that their insurance would pay first. Unfortunately, if someone has a slip and fall, most likely if they go to a lawyer, the lawyer will name the Tenant AND you in a lawsuit and then it comes down to both insurance companies paying for defense costs.
Ultimately, you want to have as much coverage out there as is possible. Requiring tenants to carry Renters insurance is a good idea, but it is not fool proof so make sure you have a good policy for yourself.