Requiring Renters Insurance

[Will Zena]

Hi, Does anyone here require their tenants to have renters insurance? From Ads I have heard it can be very low for a renter to have. Perhaps instead of requiring it give a little education to the tenant about the benefits, affordable rates and recommend it?

[Jason Bott]

@Will Zena a few points to consider.

Insurance companies like to see a landlords lease require renters insurance.   It adds another layer of Liability for you and you insuranc.  The benefit to you is there can be claims that pay out from the renters policy, not your landlord policy, which keeps your insurance premiums low

From the tenant perspective,

1)  they have liability coverage if they get sued

2)  their personal belongings are protected by a renters policy, NOT your responsibility.  This should also be stated clearly in the lease

3)  The renters policy pays for a temporary place to stay when the apartment is inhabitable because of a fire or water claim.

Both #2 & #3 are usually points of conflict when you do not educate the tenant up front on their responsibility versus what your Landlord policy provides.