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  • Writer's picturejoseph retcho

Can I Require My Tenants to Have Renters Insurance as a Landlord?


new tenant receiving keys

Being a landlord has various responsibilities, one of which is property protection. You most likely have landlord insurance, but you may question if you can force your tenants to have their own renters insurance. The answer is most likely yes.


To be clear, landlords are not required to require tenants to obtain renters insurance. However, as a condition of the lease, you may require that they get a renter's policy. Requiring tenants to obtain their own renter's insurance policy can provide them with liability protection while also protecting you as a landlord from liabilities caused by your tenant.


Why Would a Landlord Require Renters Insurance?

You may want to mandate renters insurance from your tenants for a variety of reasons as a landlord. Consider the following advantages:

  • Renter's insurance can help cover the costs of liability claims. In most cases, as the property owner, you may be held liable for injuries caused on your property. On the other hand, a renters insurance policy may help cover your tenant in the event of an injury to your tenant's guests, up to the policy's limit. Depending on the circumstances of the injury, this protection may or may not be provided.

  • When tenants have renters insurance, it may be easier to accept pets. While tenants may enjoy the company of their pets, landlords may be concerned about potential liability. Requiring tenants with pets to get a renters policy provides safety and allows you to rent to people who have four-legged pals. A renters insurance policy will normally cover accidents to others caused by a tenant's pet while on your premises, up to the liability limit.

  • Renters insurance might help protect you from harm caused by a tenant's party. Although you may choose to forbid large parties in the conditions of your lease, damage from smaller gatherings may still occur. Renter's insurance may be required to assist cover losses in the event of a mishap. Without a renters policy, you could be held liable for any damage or injury caused by an unruly gathering.

  • Renter's insurance can assist landlords defend themselves against tenant negligence. Tenant negligence can manifest itself in a variety of ways, from a kitchen fire while cooking to water damage from an overflowing tub. When a tenant's negligence causes damage to your property, the tenant's renters insurance may help cover the costs.


Should my tenants have renter's insurance?

Personal property of the renter(tenant), such as furniture or gadgets, is not often covered by a landlord's policy. One significant distinction between landlord and tenant insurance coverage is that your insurance would repair the building in the event of a covered loss, but would not cover the costs to replace or repair your tenant's personal goods.


Here are a few particular reasons why your tenant might think about renters insurance:

  • A renters insurance policy may pay the cost of temporary accommodation if a covered loss, such as a fire, renders the property unusable for an extended length of time.

  • A renters insurance policy would normally cover the loss if a tenant's personal possessions were stolen.

  • If a tenant is judged to be at fault for causing water damage to their apartment and/or the flats below, the damage may be covered by a renters insurance policy.

  • If your tenant causes property damage or personal injury via negligence, a renters policy may cover the damage and assist them avoid certain out-of-pocket expenses as well as potential legal fees, up to the policy amount.


How Much Renters Insurance Should be Required?

Your tenants must select how much renters insurance they require. However, by requiring tenants liability insurance as part of the lease agreement, you underline the need of preserving their property and minimizing their liability risk.


Tenants who possess pricey devices (such as computers or gaming consoles) or store other valuable items in their homes may think about adding a personal articles policy to help with replacement expenses if any of those items are destroyed or stolen.


Isn't Landlord Insurance Supposed to Cover Everything?

Landlord insurance often covers the liability associated with renting out a property. It covers items like structural damage and medical bills for visitors injured on the site. Tenants have their own concerns that are not covered by your landlord's insurance coverage. With renters insurance included in the lease, you are assisting your tenants in protecting themselves against financial loss as a result of an insurable incident.



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