Being a landlord can be incredibly difficult, but it can also be incredibly rewarding. After all, the New York rental market is the most expensive in the entire world, with the only exemptions being San Francisco and Hong Kong. And, these prices are often the reason behind becoming a landlord. One thing that can be helpful though is insurance and not just property and umbrella insurance. Instead, renter’s insurance is a must.
Renter’s insurance is purchased by renters, not landlords
While this is true for renters across the country, including New York, landlords can require renters to get renter’s insurance. This is done by adding the renter’s insurance requirement into one’s lease agreement or through a lease agreement addendum for renewing tenants.
Financial protection in uncertain times
Even though we are in a new year, it does not mean that our renters are in a better situation. Unfortunately, many tenants may be living month to month. And, if they cannot pay or if an apartment is left empty, the mortgage company still expects to be paid. Renter’s insurance can help mitigate some of this risk because it ensures that damages are quickly mitigated to either keep the renter in the property or get it ready for a new renter.
What does it cover?
Renter’s insurance covers the renter’s property for damages, including the structure itself and the renter’s possessions. It also covers personal liability, like if someone is injured due to the tenant’s negligence. This can help landlords avoid or mitigate some premises liability issues. This means that landlords get an extra amount of protection without spending anything additional. And, for the renter, renter’s insurance is extremely inexpensive, often less than $200.
Wait, this helps with premises liability?
Yes! Renter’s insurance does not just pay for the loss of the renter’s possessions. It cover’s personal liability issues as well. As such, for example, if someone is hurt accidentally, it covers that person’s damages, including medical bills. It also covers if they damage another tenant’s property as well. This can avoid costly litigation between multiple parties, and avoid claims of premises liability against a landlord when that negligence actually flowed from a tenant.
For Staten Island, New York, landlords, renter’s insurance is a win-win for renter’s and landlords. However, when issues do arise, our firm has experienced liability defense ready and able to help landlords.