Do Your Minneapolis Duplex Tenants Have Insurance?

Just 37% of all renters carry renter’s insurance.

That means it’s likely less than 4 out of every 10 tenants impacted by recent hurricanes in the Carolinas and fires in southern California had coverage.

About 75% of renters who have insurance do so because their landlord requires it.

Many tenants without insurance mistakenly believe the property owner’s policy will cover them if something happens. And if or when it does, they may seek reimbursement for lost personal property from their housing provider.

Requiring tenants to carry insurance in the lease can go a long way toward preserving housing provider/renter relationships. The clause should be specific about coverage limits, proof of insurance, and the repercussions of not having it. Asking for a copy of the declarations page of the policy is an easy way to confirm the policy exists, and for what amounts. You can also ask to be named an interested party, which can help you get notified if the policy lapses.

Renters insurance protects tenants against losses from property damage resulting from things like fire or plumbing leaks; whether caused by themselves or others. It includes personal liability coverage for property damage, or if a guest falls in the unit, or if their dog or cat bites someone. It can also cover tenants in the event of theft.

If a unit becomes uninhabitable, the renter’s insurance can also pay for a short-term rental or hotel while it is repaired.

Of course, like all other kinds of insurance these days, residents in areas prone to natural disasters like wildfires, hurricanes, earthquakes and floods may involve higher premiums.

As housing providers, we can help create a lot of goodwill by simply making the value of carrying a renter’s insurance policy clear to our tenants.