Had a random encounter with a Tony nominated actress in a very popular Broadway show this weekend.  The thing is I did not know she was famous until I looked her up.  So she was a well regarded actress in a very popular show yet acted as polite and unassuming as anyone else on that street.

So many things to take away from this encounter beyond it being a cool moment in time.  The one that comes most to mind is if you really are that great, famous, have the best service, the best prices, the best features, etc.  It is ALWAYS better to have other people provide these comments and compliments than it is for you to advertise them.

That is what I think when I think of an insurance agent.  See when you sign up through an agent you essentially hire a resource, an advocate, a personal shopper, a friend, a source of funds for your charity, a referral source, a new connection, etc.  You also spend locally and help strengthen your local economy.  Yet you do not pay for any of this the insurance company providing the coverage does.  Why would you not want to hire all those people for no additional money than what you already spend on insurance?  I have no idea.

That’s right if you have tenants make sure they get renters insurance!!  So why do you insist that your tenants get renters insurance TO PROTECT YOU.  That is right renters insurance actually protects you as the landlord.  Look at it as another layer of protection for you, your business and your assets and unlike your policy your tenant(s) pay for this one.

So your tenant is having guests over and these guests happen to hurt themselves.  Whose fault is it?  Since you do not get to decide and any attorney will name all possible parties you better make sure your tenant has money to pay for their share of a possible lawsuit.  What if there was damage to your property and the tenant was found liable.  Would you want them to have money to pay for damage to your property?

Also, one of my favorite parts about renters insurance is rarely talked about.  So there is a fire or water damage or something weather related and you cannot live in the home/apartment, now what?  It’s called “loss of use” coverage and is built into a renters policy.  This coverage will actually pay for your temporary living expenses while your home is being repaired or while you look for a new place to live.  Heck your landlord has coverage so he can collect the rent when you cannot live there why wouldn’t you want money to pay the rent as well?

How about you have them get it just because you know it is in their best interest?  Yes, very diplomatic of you however not as useful as writing it into the lease.  Although it is logical for a renter to spend $8-$20 a month for a basic plan many choose not to take this step.  So help them protect themselves and while your at it enjoy the extra layer of coverage you will get as a result.

Bottom line is why wouldn’t you want your tenants to have all the benefits that renters insurance provides for both of you?  MAKE IT PART OF THE LEASE YOU ARE DOING EVERYONE A SERVICE

**Feel free to check with your attorney**

Historically insuring where you live costs less than insuring what your drive.  Although this is finally starting to change it is still a huge bargain considering just what is at stake.  So, you buy the insurance to do what?  Cover this structure that you live in, keep your stuff in, raise a family in, make memories in, develop equity in, make neighborhood friends, decorate for holidays, renovate, customize, etc.  Yes, all those things and probably more.  So that is what insurance does.

What is it?  It is protection so that an occurrence that typically happens in a moment does not have any long term, negative financial impact.  So while it is protecting you from a bad moment it is NOT; a maintenance policy, a way to profit on a bad moment, a chance to collect a check and let your house suffer.

Now when people need money, the economy is “bad” and maintenance has been deferred claims go up.  What most of these people fail to realize or are not told is when you file a claim the odds of your rates going up are really good.  So although you may collect in the short term you will pay in the long term.

So what  is the lesson in this, here it comes; Insurance is a bargain and does so much for you and yours do not abuse it.  When using the insurance, use it for what it is meant to be used for, making sure a bad moment does not last any longer.  It is not to maintain your home it is to make sure your home/house can be brought back to what it was before the instant.  Heck, if you cannot do $1000 in work on your house or afford $1000 in work on your house maybe you should not own a house.

Just some ideas of course use at your discretion.