Renter don't buy renter insurance according to rental agreement

[Qina Cai]

Renters don't buy renter insurance according to the rent to agreement, e.g. liability coverage is not enough, the insurance don't covers all renters in the house, it doesn't cover pet ownership, etc. We pushed renters to work on it, but got ignored. Can you advice me what is the solution for this?

[Nathan Gesner]

Evict them.

When you require tenants to purchase insurance, you must spell out exactly what coverage they need and you need them to add you as "additional insured" on their policy. As additional insured, you will receive a copy of their declaration page proving they have insurance. If they ever lapse or cancel their policy, you will be notified. And if they are ever sued, you will be protected under their liability insurance.

When you set a rule, you need consequences to enforce it. Give them notice that if they do not have insurance and provide you with proof in 14 days, then you will terminate their lease. Then stick to it. Don't accept excuses or negotiate because they're "too busy" right now. 14 days is plenty of time.

Other options: 
-  purchase a Master policy that covers all your renters and charge them for it. If it's $100 a month and you have four renters, charge each of them $25 rent increase. 
-  include in your lease that if they fail to purchase insurance, you will automatically purchase it for them and charge them for it with a 50% increase to cover your administrative costs.