Can I require tenants to have rental insurance?

Question

Can I require tenants to have rental insurance? If they say they don't need it, should I get that in writing? Would I be required to pay (or my insurance) for their damaged property (tv, couch, jewelry, etc) in the case of something happening in the home? Does it matter if that was theft, natural disaster, tenant caused problem, maintenance issue (like water damage because pipe bursts etc)?

Do you require it? If I don't tell them to get it does that change things? If I tell them to get it but it isn't a requirement to rent to them does that mean anything?

JD Martin · Answer

Can you require it? Yes.

Should you get their refusal in writing? Doesn't really matter.

Are you required to pay? Your insurance won't cover their stuff, regardless of reason.

Do I require it? No. If their stuff burns up that's really not my problem. We recommend it.

If you don't tell them to get it does it change anything? No.

If you tell them to get it but it's not a requirement to rent does that change anything? No.

My advice: require it if you're prepared to enforce non-compliance. You should have your own good insurance that covers all of the tenant's misdeeds that could affect you, and the tenant should have their own insurance that covers their stuff should something happen. My experience is that renters rarely get it, and those that do get it often let it lapse, and keeping up with it as a requirement of tenancy is a hassle, and you should always maintain your own insurance in case something happens as you damn sure don't want to be relying on a tenant to insure your property.

Christopher Brainard · Answer

Yes, you can and should, but you need to write it into your lease. I require this of all my tenants and I have a preferred agent we work with that offers coverage for ~$10 a month.

-Christopher

Eddie Memphis · Answer

Yes, you can and should. Another layer of liability coverage you don't have to pay for. They need at least 10k in personal property and 100k liability.

You need to talk to an insurance broker. Coverage varies by state. Find an independent broker or agent. They will access to many brands of insurance and be able to answer your specific questions.