A comprehensive standard lease will have a clause that reminds tenants their possessions are not insured by the landlord’s insurance and advocates they obtain a renter’s policy. Going the next step and requiring tenants to purchase renter’s insurance can narrow the pool of candidates, but will repay if something happens in the house that leads to damage or destroys the renter’s possessions.
Lawsuit Less Probably
Depending upon the cause of the damage, a tenant might be more inclined to bring a lawsuit against the landlord when he has no other way to replace his damaged or destroyed possessions. If the cause of the damage was faulty wiring or a bad furnace, a tenant without property insurance will likely bring a claim against the landlord. Even in instances where the tenant was to blame, if he does not have insurance, then he might attempt to claim the damage originated from a fault on the part of the landlord or a flaw of the construction.
Cleanup More Probably
Some renter’s insurance covers not just replacement of the damaged or destroyed possessions, but also removal of the damaged property. If the house flooded, the landlord will likely be left with a house full of furniture that is ruined. Renter’s insurance might cover the removal and disposal of everything, which makes it a lot easier for the landlord to clean and fix the house. A tenant who does not have insurance could just decide to leave the whole cleanup to the property owner. The security deposit can cover some of the expense, but probably won’t cover it all.
Less Likely to Move Out
In case the tenant fell asleep smoking, leading to smoke damage to all her upholstered furniture, she might be tempted to simply go out rather than deal with the problem of removing and replacing her furniture. In addition to having to remedy the problem, the landlord will be out a tenant and without lease. The security deposit can cover part of the fix, but none will stay to cover the lease for the time the device is under repair.
Renters can extend fundamental policy to include accountability. This sort of policy would pay a landlord for repairs needed after a fire caused by the tenant, permitting the landlord to avoid making a claim on his own insurance and stop him from having to go after the tenant to recover damage repair expenses. Some accountability policies also cover personal injury lawsuits resulting from things like dog snacks –an edge to both landlords and tenants.