Should I require renters insurance from tenants?

[Aaron Peterson]

Is it wise to require my single family home tenant to carry renters insurance? If so, why?

[Tom Parris]

Hi @Aaron Peterson,

An absolutely must. It acts as another layer of protection for you. Example, a guest of your tenant trips and falls on your property, and sues you, your homeowner's policy would cover it. But wouldn't you rather them sue your tenant first and have their renter's insurance cover it? It then doesn't impact your premium or insurability. This is just one of many examples of loss you can avoid. (Theft, fire, etc) A typical renter's policy would cover water damage too, but that would have to be caused by an AC drain line clogging and overflowing.

The cost of renter's insurance is $150/year that is a cost the renter pays for. Make sure you require your tenant to put you down as a secondary insured. That way you're notified if the policy lapses or expires.