[Blog #33]: Renting Out Your Investment Property, This Is Why Your Tenant Needs Insurance

In today's blog we talk about the importance of your tenant having insurance. You have recently purchased a unit for income purposes and looking to get a qualified tenant to rent the unit from you. Here are a few reasons why your tenant must have insurance!

Tenant insurance covers 3 things: liability, living expenses and contents.

1. Liability: this coverage is for someone who injures themselves in the renters’ property. For example, your tenant is mopping the floor and their guest slips on the floor and somehow injures themselves. This insurance falls to the renter's liability insurance and will not come back to the landlord.
2. Living Expenses: pay for your tenant to live elsewhere while the unit is being repaired. Your landlord insurance is covering your lost rental revenue, but it doesn’t cover your tenant to live elsewhere. Without it, tension could arise between you and your tenant, especially if you want to keep them as a renter. Renter’s insurance covers those additional living expenses for them.
3. Contents: Let’s say a pipe bursts in the basement, destroying your renters’ bed, nightstand, and couch. Your landlord’s insurance will pay for the repair to the unit, but their stuff, unless they have their own insurance, isn’t covered. All their belongings are lost. Trying to help them out and claiming their contents on your policy is insurance fraud and against the law.

This is why it is important for your tenant to have insurance because the insurance covers you from having any headache in the future if anything happens in your condo or house!