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Renters Insurance

Todd Ortscheid - Thursday, August 14, 2014

We require all of our tenants to have renters insurance, and our leases clearly stipulate this requirement. This doesn't just protect the tenant, though, it also protects the landlord.

For tenants, your biggest concern is your personal property. In Georgia, the landlord has absolutely no responsibility for your personal belongings. If the house burns to the ground and you didn't have renters insurance, then the landlord has no requirement to give you any compensation for your belongings. They're just gone. The only thing to protect your own possessions is your own renters insurance. And yes, we have had circumstances where houses caught on fire or main water lines ruptured and all of the tenant's belongings were ruined. The tenants that had renters insurance were able to get reimbursed for all of it. The ones who didn't abide by their lease and didn't have insurance were left with nothing.

But liability is also an issue for a tenant, even more than it is for a landlord. While you occupy the property, all liability for what happens on the property is yours, not the landlord's, unless the issue was a result of a gross negligence on the part of the landlord. That means that if someone gets injured in the property while you're renting it, you're almost certainly the one that is going to be sued, not the landlord. Renters insurance can also protect you in this circumstance.

For property owners, you also have some benefit from us requiring the tenants to have renters insurance. By them having insurance, they're less likely to have problems paying their rent if something does happen to cause their belongings to be damaged. If they don't have renters insurance and are paying a lot of money to replace their possessions after an act of god, then they may not have money to pay you, and then you're dealing with an eviction.

This is just one of the many issues covered by our lease agreement that the generic agreements you receive on the internet or from books won't cover. To talk to us about property management so you don't have to worry about such things, give the office a call seven days a week.

Landlord Insurance

Todd Ortscheid - Sunday, April 20, 2014

Our management agreement, and the management agreement of just about any reputable property management company, requires the property owner to get an insurance policy for their rental property that is especially designed for rental properties, and to name our company as an additional insured. Why is this important?

First, the importance of the policy itself is to protect you from liability.  If you just have a regular homeowner's insurance policy, the insurer can typically deny any claims that arise while you are not occupying the property. So if the house burns to the ground while the tenant is living there, even if the tenant is not the cause of the fire, the insurer usually has an "out" to deny your claim, leaving you in a situation where the mortgage company can call your loan in full since they no longer have any collateral, or you have to pay out of pocket to rebuild the house. Obviously, this is not a good situation. A landlord insurance policy will cover this. Other liability that you want to have your insurance agent cover includes claims from a tenant if they get injured in the house, claims from neighbors if a tenant's dog bites them, etc. Generally, we recommend that you get at least $1 million in liability coverage for these issues, but ask your insurance agent if he might recommend something different.

Second, you'll want to make sure that we're named as an additional insured. This protects you from the insurer trying to deny a claim just because the property was under someone's management other than you directly, and it also protects us from the same liability that you are covering yourself for.

In addition to landlord insurance, we also require all of our tenants to have renter's insurance to cover their individual belongings. Our leases all state that we and the property owner are not responsible for the tenant's belongings, regardless of who is responsible for any damage or theft, so they have to have their own coverage to insure their belongings. This is additional protection for you.

To find out how to sign up for management services with us, please submit a form on this site, or give us a call!

GTL Real Estate
120 Village Circle
Senoia, 30276

(678) 648-1244

Office Hours: 8am - 5pm

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