Can a Landlord Require Renters Insurance?

August 30, 2022

Renting a home does come with its fair share of advantages. You don’t have to worry about property taxes, and it doesn’t require a long-term commitment like buying a house does. However, even when living in a rented home, you still encounter some risks. Therefore, your landlord can require you to have a renters insurance policy. 

In this article, we’ll discuss the benefits of renters insurance for both parties and why landlords typically make it mandatory. Let’s get started!

Can a Landlord Require Renters Insurance?

As stated above, landlords can require renters to purchase a renters insurance policy. The reason for this is the landlord’s property insurance won’t cover a tenant’s personal belongings. Landlord insurance only covers the structure of the home and the landlord’s personal items.

Below we’ll discuss the benefits and security renters insurance provides. The policy is equally beneficial to both tenants and property owners.

How Does Renters Insurance Protect Tenants?

Your landlord’s property insurance won’t cover damage to your personal belongings in the event of a fire, theft, or flood. This means if your personal property was destroyed or stolen you’d have to bear the financial burden. Therefore, with the help of renters insurance, you’ll get an extra layer of protection.

The benefits of purchasing a renter’s insurance policy if you’re deciding to rent include:

• You’ll be compensated if your belongings, such as your laptop, TV, or other valuable items are lost, stolen, or damaged.
• Protection against liability claims if someone is injured on the property.
• Any belongings stolen from your vehicle would be covered. This can include a phone, laptop, and so forth.

It’s important to keep in mind, your policy will only cover you up to a certain limit. Talk with your insurance provider to see if your limit should be increased or not. Typically, if you keep high-value items on the premise then you may need to increase your coverage limit.

The Benefits of Requiring Renters Insurance

A great way to mitigate the risks of owning a rental home is to require your renters to have insurance. This way if someone is injured on the property you won’t be held financially responsible. Also, if your tenant’s personal property was stolen or damaged you won’t have to take on the burden.

Requiring your tenants to have renters insurance is beneficial for the following reasons:

• You won’t have to pay for damage. Essentially, if a flood, fire, or theft occurs and your tenant’s personal items are damaged or destroyed their renters insurance will cover the costs.
• You won’t be responsible for liability claims. If your tenant is involved in a lawsuit, they may try to hold you accountable for the legal fees and medical bills. In this instance, if they have renters insurance, you won’t have to get involved and possibly end up in court.
• You can weed out bad renters. If you require renters insurance you can figure out who’s able to pay rent on time. Also, if a renter refuses to get insured they may have problems finding a provider who will cover them. This could indicate that they’re irresponsible or file a lot of claims. Which means they may be more trouble then they’re worth!

Bottom Line

More and more landlords require their tenant’s to purchase renters insurance due to it’s vast benefits. If you’re a landlord looking to insure your rental property give us a call today or fill out our online quote form.

Additional Resources

• The best states for landlords