How to Ensure Tenants Get Renter's Insurance

[Brandon Weis]

We have historically had in our leases that renter's insurance is required, but we had been lax on enforcing it because owners didn't really care and not all tenants had it. We are now beginning to crack down more as some insurance companies for property owners are asking for copies of all renter's insurance policies to issue liability coverage on properties.

Aside from having in leases that renter's insurance is a requirement, how do others actually enforce the tenant getting it? Do people require it before signing the lease? I feel like that sounds simple but in reality would hold up the leasing process for tenants that are not proactive. 

In order to encourage tenants to get renter's insurance, we have been contemplating instituting a $50 monthly fee until they provide proof of renter's insurance with the owner listed as an additional insured, but not sure how well that would hold up if we ever had to evict.

[JD Martin]

Quote from @Brandon Weis:

We have historically had in our leases that renter's insurance is required, but we had been lax on enforcing it because owners didn't really care and not all tenants had it. We are now beginning to crack down more as some insurance companies for property owners are asking for copies of all renter's insurance policies to issue liability coverage on properties.

Aside from having in leases that renter's insurance is a requirement, how do others actually enforce the tenant getting it? Do people require it before signing the lease? I feel like that sounds simple but in reality would hold up the leasing process for tenants that are not proactive. 

In order to encourage tenants to get renter's insurance, we have been contemplating instituting a $50 monthly fee until they provide proof of renter's insurance with the owner listed as an additional insured, but not sure how well that would hold up if we ever had to evict.

 We require proof of insurance before move-in day, and we are listed as additional interest in case they cancel. We have it set up where they can upload their proof on a regular basis right in their online tenant portal. It's one of those things where if you are going to require it, you have to be prepared to evict for not getting it. Years ago we didn't require it and just recommended it to the tenant, but it's so cheap and gives our insurer something/someone to abrogate against should we have to make a claim that we don't allow it to be optional anymore.