Can you sue renters who don’t have Atlanta Renters Insurance? My tenant did significant damage to the premises by fire (or water, or…) and can’t afford to pay for the damages. I don’t want to make an insurance claim on my policy, because my rates would go up. What do I do?
That’s a great question, and there’s a two-part answer…
Can You Sue Renters Who Don’t Have Renters Insurance?
Well, since we live in America, anyone can sue anyone else for anything else, so the answer is yes! But here’s the rub: Not only do you have to win, you have to collect that judgement. Winning is probably not challenging, collecting is. If you sue your tenants for damage that their negligence caused to your premises, you get the satisfaction of winning. You might even get a default judgement since it’s pretty unlikely that they’ll show up to defend themselves.
But what do you do once you have that default judgement? How do you collect it? Chances are that the renters have no real assets to speak of, so that’s out of the question. You could garnish their wages if you’re desperate, but… There’s a problem with that, too!
Every state has specific rules on what’s considered to be disposable income, and that’s all you can garnish. Of that disposable income, you can generally only take a specific percentage of it. If your judgement is for tens of thousands of dollars, it might well be decades before you can collect on it!
Trust us when we say there’s a better way!
Should You Sue Renters Who Don’t Have Renters Insurance?
Nope. You shouldn’t have to. The reason is simply that you should be requiring your tenants to have renters insurance every single time. Renters insurance pays for losses caused by their negligence, which helps to ensure the safety of the rather significant asset that you’re leasing to them.
In addition, renters insurance pays to defend them. They’re not being defended against you, in most cases. If your insurance company pays the loss and goes after the tenant, you can sleep well at night because it’s just two insurance companies determining liability. Everyone is on an equal footing, you didn’t sic your insurance company’s lawyers on the tenants.
Every one of your tenants should have renters insurance every minute that they live in your apartment. Truly responsible tenants will already have a policy before moving in, of course, but you can require that they maintain coverage as well and that should be part of your lease.
As a landlord, you should be aware that tenants often believe that you or your insurance are responsible for their personal property. An additional benefit of requiring the coverage is that you dispel this misconception and they know that insuring their property is their responsibility.
When you require Atlanta Renters Insurance, you’re just requiring the resident to do something they already should be doing in the first place. In addition, you’re protecting your interests. Your insurance company might even give you a discount on your commercial coverage for requiring renters insurance, because it makes sure that there’s a way for the company to recover against that policy if there is a loss.
- Potential discounts on your insurance.
- Tenants understanding what they’re liable for.
- An easy way to see which tenants will nickel and dime you (the ones who quibble about fifteen bucks a month in renters insurance!).
What more could you ask for? Your lease should require renters insurance because it solves a number of problems.
The national average price of renters insurance is just $187.00, according to the III. That works out to as little as fifteen dollars per month. The vast majority of families can budget renters insurance easily at those prices.
Additionally, it's important to note that renters are at a significantly higher risk of experiencing loss than homeowners. Renters occupy roughly one third of total housing stock in the country, and yet they are fully fifty percent more likely to experience theft than homeowners, according to the Bureau of Justice Statistics.
It only costs a few dollars a month to protect your family, and this cheap renters insurance is a great way to mitigate the additional risks that come with being a renter.(800)892-4308 or click to get covered - whether you need Atlanta renters insurance quotes online or coverage anywhere else!
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