Renters insurance mandatory

7 Replies

Can you make it mandatory for your renters to carry rental insurance? So if they are found to be negligent it goes against there policy and not just yours?

Yes; my clients and I (as an investor, as well) require all tenants to carry renter's insurance "with landlord as additional insured."  It's critical coverage especially in the case where pets are permitted and/or with washer/dryer/dishwasher in units that can often enough be overloaded and leak/flood.  I don't recommend leasing without it and the cost for the tenant is minimal.

Originally posted by @Patricia Steiner :

Yes; my clients and I (as an investor, as well) require all tenants to carry renter's insurance "with landlord as additional insured."  It's critical coverage especially in the case where pets are permitted and/or with washer/dryer/dishwasher in units that can often enough be overloaded and leak/flood.  I don't recommend leasing without it and the cost for the tenant is minimal.

 I do the same on all my leases.

@Randy Wiley -  Yes, I require it.  I'm not super diligent about enforcing it though.  Most of our tenants have it, but some of our inherited tenants ignore the request.  I'd like to threaten eviction, but at the same time it's not worth the cost of turnover.

To answer your second question, yes, their insurance takes the first blow, and also covers their (and other tenants) personal belongings.  We had a claim earlier this year that resulted in over $20k worth of damage to our building, and $7k to other tenants personal possessions.  The tenant at faults insurance covered the whole thing

My lease requires it. When I enter them into my online payment system (cozy) there is an option that actually makes them upload their policy. 

Patricia absolutely has the right idea here. It is so important to make sure that they're covered for a myriad of reasons (ie.make sure that their personal property is covered, along with temporary living expenses - ie. if something happens within the property that forces a tenant to need to stay in a hotel, most renter's insurance policies cover that cost). More so, a roommates' items aren't always covered, so it is best that all roommates have renter's insurance. And not to argue the merits of renters insurance, but to re-emphasize what has been stated above, most leases require it these days. @Randy Wiley