Requiring Renter's Insurance in Park City Property Management
Let me share with you a story of how renter's insurance is the right decision for Park City property management. It all started with a small cooking fire in the kitchen of a second floor condominium. Fortunately no one was hurt but this incident caused a chain reaction of problems for both the tenant and the landlord. I would like to lay out the incident and highlight a few of the ways renter's insurance could protect both the tenant and the landlord.
The Incident
It started as a small cooking fire in the kitchen. A meal on the stove top caught fire and did some damage to the stove. This particular condominium is in a community that has a fire suppression system in each building and this fire was enough to cause the sprinkler in the kitchen to go off and put out the fire. These types of system however do not measure or know when a fire is put out and so the sprinkler continued to spray until a maintenance person and the fire department responded and were able to shut off the water to the system. By this point there was significant water damage to both the condo the fire was located in and the condo directly below. The poor people downstairs had just finished installing a new wood floor that was almost completely ruined by the water. The worst part of this situation however was the fact that the tenant did not have insurance.
The Aftermath
Both the tenant and the people living in the condo below were displaced from their homes for a few weeks while repairs took place. Since the tenant did not have renter's insurance they were forced to pay for a place to stay while the condo was being fixed. The landlord ended up being responsible for all of the damage to both properties since it was caused by his tenants and they were not insured. The upgraded flooring in both units was a complete loss, there was a significant amount of sheetrock and paint damage along with the stove, cabinets and other items. The cost of repair of all the items was so significant that the landlord eventually lost the property to the bank and the tenant had to move. When you look back and the thousands of dollars spent in this instance the small amount you would pay per month for renter's insurance seems insignificant in comparison. Renter's insurance can also offer personal property protection for tenants and some type of housing money should there be a loss. It definitely makes sense for Park City property management.
What You Can Do
The first step is to make sure your tenants have some type of renter's insurance. Request a copy of the policy and if they can't produce one ask them to get it. Another option is to hire a competent Park City property management company. We have a blanket policy that covers renters at no cost to the home owner. The tenant is free to get their own policy or use ours and the property owners are all protected.
If you would like more information on renter's insurance, or further information about Park City property management in general click the link below for a free consultation. You will receive valuable information specific to your property that will help you make an informed decision. You will also receive a free, no-obligation quote on our property management services. At CC Realty we specialize in making investment property ownership a trouble free experience. Please contact us today for your free consultation.
