How much liability insurance do you require your tenants to have?

General Landlording & Rental Properties
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How much liability insurance do you require your tenants to have?

Caryn Seifert
Investor · Coconut Creek, FL · Member since 2016 · 23 posts · 13 votes

Currently, I required them to have $100,000 in liability insurance. Would love to know what limits other LL are requiring.                    Property is located in Broward County, FL. 

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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
4y

$100,000 is what I require. I think it's pretty standard around the country. 

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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    4y

    $100,000 is what I require. I think it's pretty standard around the country. 

    The DIY Landlord Book4.7248 Reviews
    WebsiteView Page
    1Reply
  • Bud Gaffney
    Rental Property Investor · Boston, MA · Member since 2019 · 2k+ posts · 1k+ votes
    4y

    I think that's a perfect amount :)

    1Reply
  • Caryn Seifert
    OP
    Investor · Coconut Creek, FL · Member since 2016 · 23 posts · 13 votes
    4y

    Thanks for your replies! I was wondering if I should increase it.

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  • Edward Tamayo
    Los Angeles, CA · Member since 2021 · 20 posts · 34 votes
    4y

    @Caryn Seifert

    Do you have your own umbrella policy as backup?

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  • John T.
    Rental Property Investor · Central U. S. A. · Member since 2013 · 296 posts · 149 votes
    4y
    I require that my Tenants have Renters Insurance with personal liability coverage in the amount of $300,000.  When your tenant negligently burns down you $250,000 rental the Landlord and the Landlord's insurance company will be happy to file a claim on the Tenant's Renters Insurance.

    True story:  I just finished re-building a $220,000 rental house due to a fire.  The Tenant negligently caused the fire by weeding the flower bed with a propane torch.  His Renters Insurance paid for the damage; not my insurance.
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  • Caryn Seifert
    OP
    Investor · Coconut Creek, FL · Member since 2016 · 23 posts · 13 votes
    4y

    @John T.

    Wow! I've heard/seen plenty of crazy things but weeding with a propane torch! Sorry, you had to deal with that. I appreciate your input. I will be increasing the amount they are required to carry accordingly for each location. FL $300,000 / OH $100,000. 

    FL is more litigious and house prices are higher (along with just about everything else LOL).

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