It seems that at least on a weekly basis I see local news stories about renters who lose much of their personal belongings because of a fire, flood, storm or other property damage that also damages their contents. Often the reporters will comment that building was insured but the contents were not, and they show heart-breaking images of tenants sobbing that they’ve lost everything they own. I’ll resist going off onto a rant about media bias and just make my real estate investing-related point here:

Encourage your tenants to get renters’ insurance to cover their furnishings and personal belongings. Be sure they clearly understand that you have insurance ONLY on the building and fixtures you own and that they are responsible for insuring their belongings.

Indicate this in your rental agreement and consider going the extra step of asking tenants to initial that particular clause. If you have a multi-unit building with a community bulletin board or newsletter, periodically put up reminders about insurance.

If you’ve dealt with this issue, what have you done to motivate your tenants to protect themselves with renters insurance?

Jackie