Renter's Insurance - Should Tenants Have It?

[Kurt Gardner]

My insurance agent has provided me with wise information on multiple occasions (the greatest money saver so far is to NOT escrow my insurance and bundle my properties when they are geographically located in close proximity - if we get a hail storm, as we are prone here in the Midwest - I will only pay one deductible as opposed to a deductible for each property in a claim - maybe you knew this, I did not!).

Aaaaaaanyway, he recently encouraged me to require renter's insurance for all my tenants.  Basic liability quotes are around less than $20 per month for approximately $20k personal property coverage and $300k liability coverage. The advantage to me is if a guest is visiting my tenant and they fall and smash their face on the coffee table, there is money to be collected from a liability policy that doesn't impact my insurance or my personal holdings.  The disadvantage is my tenant has to pay a little more each month and it's just one more thing that a renter may not want to do. 

I'm debating making it optional with a credit to the monthly rent - enough to incentivize the tenant, but not quite enough to cover the full cost with any leftover ($10-15 off monthly rent).

Do you require any form of renter's insurance?  Why or why not?