The importance of requiring home insurance for your tenants

Once you have found your ideal tenant, you are ready to sign a lease. It is important to indicate the obligations associated with renting the unit and to ensure that the tenant accepts them.

For example, we recommend that you require proof of insurance from your tenant, on an annual basis. This protects the tenant for damage to the building, but also if there are repercussions for the neighbors, both in terms of their property and likely injuries sustained because of an incident. The insured has a line of defense if tenants in the building make claims against him or her. Insured tenants are also protected if the building's insurance policy sues them.

Tenant's home insurance is not mandatory but is strongly suggested. It is inexpensive compared to the protection it can provide if substantial damage is reported because of an incident. Just be sure to advise the tenant of this requirement before and during the signing of the lease.