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Should You Require Renter’s Insurance as a San Francisco Landlord?
October 15, 2021
The Quick Answer - Yes.
When your own insurance coverage is up to date and helping you hedge against unexpected disasters and unseen liability, you likely feel pretty protected. However, as a rental property owner, you also have tenants to think about. They’re living in the home and creating their own potential risks.
Renter’s insurance is a must. It’s not expensive for your residents and it can increase the amount of protection your investment property has.
Here’s why you should require it.
RENTER’S INSURANCE IS GOOD FOR YOU AND YOUR RESIDENTS
With a good renter’s insurance policy in place, everyone gets a little more protection. Your residents can repair or replace their personal possessions if something happens, and there’s more liability coverage for everyone.
1. COVERING YOUR RESIDENT’S PERSONAL PROPERTY
The best reason to require renter’s insurance is that there’s coverage for your tenant’s personal property. If a pipe explodes and water damages your resident’s furniture or a window breaks and some expensive electronics are damaged, the renter’s insurance policy will cover the cost to replace or repair those things.
Many tenants assume their landlords would pay for those replacements, but a landlord’s insurance policy will not cover those items. Under a landlord policy, liability and the structure of the home is covered; a tenant’s personal property is not. So, your residents need a renter’s policy to make sure they don’t suffer a major loss if something happens in their unit.
2. PROVIDING LIABILITY PROTECTION
A good renter’s policy will also cover liability. If a tenant accidentally leaves an empty pan on a hot stove and starts a fire in the kitchen, the renter’s insurance will cover the repairs that are necessary. This will save the tenant from a lot of out-of-pocket expenses,
protect his or her security deposit, and provide some relief to you as a landlord.
This type of coverage will also help with expenses if that fire requires a tenant to move into a hotel for a few days while the damage is repaired. Everyone is afforded some extra peace of mind when a renter’s insurance policy is in place.
3. RENTER’S INSURANCE POLICIES ARE INEXPENSIVE
Most tenants won’t push back too hard on the renter’s insurance requirement. It’s pretty standard in San Francisco rental homes these days, and the actual policies are inexpensive. Usually, a tenant will pay $20 or less per month for a lot of coverage.
Stay informed as an additional insured
Before you allow a new resident to sign a lease and move into your property, ask to see proof of the insurance policy. You can also ask to be included as an additional insured. This will ensure you’re notified if the policy is canceled or there’s a coverage lapse.
SAN FRANCISCO PROPERTY MANAGEMENT + TENANT RELATIONS
Not sure how to enforce your lease agreement, including the requirement for renter’s insurance? You need
professional San Francisco property management. At BanCal Property Management, we’ve been working with tenants since 1987. We can make sure your property is protected and your tenants are fully insured.
Author - Kelli Smith
A tenant move-out can be one of the most challenging parts of managing a rental property. There are keys to collect, inspections to complete, potential repairs to identify, security deposits to process, and a new tenant to prepare for. When expectations are unclear or important steps are left until the last minute, even a relatively straightforward move-out can become unnecessarily complicated. The good news is that many common move-out issues can be reduced with a clear, consistent process. For San Francisco landlords, a well-managed move-out is about more than ending one tenancy. It can help protect the condition of the property, reduce disputes, streamline turnover, and prepare the unit for its next resident. Here are five ways landlords can create a smoother move-out process.
Finding the right tenant is an important part of protecting a rental property, but not every strong applicant will meet every screening requirement on their own. An applicant may have limited credit history, insufficient income, or other financial circumstances that make it difficult to qualify. In these situations, a qualified co-signer or guarantor can provide an additional layer of financial protection while allowing an otherwise suitable applicant to secure housing. For landlords, however, accepting a co-signer or guarantor should involve more than adding another signature to the paperwork. Understanding the difference between the two, carefully screening the individual, and establishing consistent qualification criteria can help landlords make more informed leasing decisions.
Verify rent-control status, lawful base rent, banked increases, licenses and deposits before you buy or take over an SF building. Step-by-step checklist.
San Francisco owners must report to the Rent Board Housing Inventory by March 1 and hold a rent increase license before any annual or banked increase.
