Requiring renters insurance
Member since 2023 · 5 posts · 1 vote
Requiring renters insurance
Most Popular Reply
Rental Property Investor · Member since 2020 · 1k+ posts · 1k+ votes
3yI just recently had a successful 5k claim where the tenants movers didn’t properly disconnect the washer upstairs. The water dripped through the ceiling and onto the hardwood ruining it. Protecting their valuables is important but don’t forget it also protects them from liability and can save you from filing a claim. This was not enough to be worth filing a claim for me and the tenant didn’t have 5k so this could have gone poorly without the insurance so I always require it.
16 Replies
- 3yBjorn AhlbladPro MemberInvestor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
My tenants don't get keys without it. If they fail to pay a premium I get notified. It is a lease violation to not keep it up.
- Member since 2023 · 5 posts · 1 vote3y
Quote from @Bjorn Ahlblad:
My tenants don't get keys without it. If they fail to pay a premium I get notified. It is a lease violation to not keep it up.
Thanks. I see the wisdom in it, without doubt.
I guess what confuses me is why some large apartment complexes don’t require it? I have a very close friend who’s in a complex that has close to 100 units. No renters insurance is required! She’s lived there for decades now. She still chooses to have renters insurance of her own volition and pays $95 a year. - 3yColleen F.Pro MemberInvestor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
@Brian Springfield The biggest issue you run across is expectations when something happens to your property and liability for animals. My lease has a cancellation clause if the property is damaged. They will need another place to live, that costs. Also liability if they do something or the dog bites someone. I require renters insurance but have to explain frequently to tenants what it is for. I also ask they carry comprehensive on their car insurance. This covers objects falling. I had 8 large healthy trees fall one year due to a very wet season. I am not liable if I am not negligent. Thankfully the only tenant with car damage had comprehensive. I was glad of that because I was busy restoring electrical service the trees had wiped out. It's worth it to require it.
Quote from @Brian Springfield:
I’m a “small time” landlord with SFHs.
Up to now I have not been actively requiring renters insurance in my leases.
I once had tenants with a large dog, and in that case I put a clause in the lease stating that they would acquire and hold renters insurance including pet coverage, but I never asked them to show me proof.
How mandatory is it? Am I setting myself up for grief by not taking it seriously?
What happens if the lease states they are required to have it but they never bother? Would that in any legal way absolve my liability and place it back on them?If not - how do you all make sure the tenant has renters insurance, that it covers personal property, liability, and animals, and how do you make sure they don’t turn around and cancel it right after they move in??
Thank you!!
Not going to get it for 99% of the tenants in Cleveland,,,,,, who cares about their items.
BTW I have done 100s and 100s and 100s of deals there so know a thing or two`
- Member since 2023 · 5 posts · 1 vote3y
Quote from @Bob S.:
Quote from @Brian Springfield:
I’m a “small time” landlord with SFHs.
Up to now I have not been actively requiring renters insurance in my leases.
I once had tenants with a large dog, and in that case I put a clause in the lease stating that they would acquire and hold renters insurance including pet coverage, but I never asked them to show me proof.
How mandatory is it? Am I setting myself up for grief by not taking it seriously?
What happens if the lease states they are required to have it but they never bother? Would that in any legal way absolve my liability and place it back on them?If not - how do you all make sure the tenant has renters insurance, that it covers personal property, liability, and animals, and how do you make sure they don’t turn around and cancel it right after they move in??
Thank you!!
Not going to get it for 99% of the tenants in Cleveland,,,,,, who cares about their items.
BTW I have done 100s and 100s and 100s of deals there so know a thing or two`
Sorry I’m not sure I’m following. Are you saying I shouldn’t require it, because most people in Cleveland don’t have a lot of valuables? They won’t therefore want to get Renters Insurance, thereby killing my pool of potential tenants?
Quote from @Brian Springfield:
Quote from @Bob S.:
Quote from @Brian Springfield:
I’m a “small time” landlord with SFHs.
Up to now I have not been actively requiring renters insurance in my leases.
I once had tenants with a large dog, and in that case I put a clause in the lease stating that they would acquire and hold renters insurance including pet coverage, but I never asked them to show me proof.
How mandatory is it? Am I setting myself up for grief by not taking it seriously?
What happens if the lease states they are required to have it but they never bother? Would that in any legal way absolve my liability and place it back on them?If not - how do you all make sure the tenant has renters insurance, that it covers personal property, liability, and animals, and how do you make sure they don’t turn around and cancel it right after they move in??
Thank you!!
Not going to get it for 99% of the tenants in Cleveland,,,,,, who cares about their items.
BTW I have done 100s and 100s and 100s of deals there so know a thing or two`
Sorry I’m not sure I’m following. Are you saying I shouldn’t require it, because most people in Cleveland don’t have a lot of valuables? They won’t therefore want to get Renters Insurance, thereby killing my pool of potential tenants?
No 99% of my tenants DO NOT have renters' insurance, I do not care. It seems you are trying to navigate Cleveland on your own, BIG mistake, it will not end well. You must have a team around you. I live on the beach in FL and have done 100s and 100s out there. Happy to make recommendations for you
- Rental Property Investor · Member since 2020 · 1k+ posts · 1k+ votes3y
I just recently had a successful 5k claim where the tenants movers didn’t properly disconnect the washer upstairs. The water dripped through the ceiling and onto the hardwood ruining it. Protecting their valuables is important but don’t forget it also protects them from liability and can save you from filing a claim. This was not enough to be worth filing a claim for me and the tenant didn’t have 5k so this could have gone poorly without the insurance so I always require it.
- Insurance Agent · DFW, TX · Member since 2021 · 348 posts · 245 votes3y
REQUIRE IT! And also, be named as additional insured so that you are looped in if they cancel.
- 3yMackaylee BeachPro MemberReal Estate Agent · Kansas City, MO · Member since 2020 · 1k+ posts · 495 votes
If you require it, you should definitely obtain a copy! - not doing so may come off as you do not care.
Make sure you are listed as an additional insured. This way you are updated of any cancellations or if premium is not paid.
- Member since 2023 · 5 posts · 1 vote3y
Quote from @Mackaylee Beach:
If you require it, you should definitely obtain a copy! - not doing so may come off as you do not care.
Make sure you are listed as an additional insured. This way you are updated of any cancellations or if premium is not paid.
Thanks everyone !
One last question. Perhaps a dumb one but…For dogs I see the reason for pet coverage on the renters insurance… liability against bites.
Do cat owners need pet coverage on renters insurance?? Would it help me if a tenant moves out and their cat left urine smell - atrocious and needs remediation?
- Member since 2023 · 5 posts · 1 vote3y
Quote from @Bob S.:
Quote from @Brian Springfield:
Quote from @Bob S.:
Quote from @Brian Springfield:
I’m a “small time” landlord with SFHs.
Up to now I have not been actively requiring renters insurance in my leases.
I once had tenants with a large dog, and in that case I put a clause in the lease stating that they would acquire and hold renters insurance including pet coverage, but I never asked them to show me proof.
How mandatory is it? Am I setting myself up for grief by not taking it seriously?
What happens if the lease states they are required to have it but they never bother? Would that in any legal way absolve my liability and place it back on them?If not - how do you all make sure the tenant has renters insurance, that it covers personal property, liability, and animals, and how do you make sure they don’t turn around and cancel it right after they move in??
Thank you!!
Not going to get it for 99% of the tenants in Cleveland,,,,,, who cares about their items.
BTW I have done 100s and 100s and 100s of deals there so know a thing or two`
Sorry I’m not sure I’m following. Are you saying I shouldn’t require it, because most people in Cleveland don’t have a lot of valuables? They won’t therefore want to get Renters Insurance, thereby killing my pool of potential tenants?
No 99% of my tenants DO NOT have renters' insurance, I do not care. It seems you are trying to navigate Cleveland on your own, BIG mistake, it will not end well. You must have a team around you. I live on the beach in FL and have done 100s and 100s out there. Happy to make recommendations for you
I’m listening. :-)
Always have ears open to good advice. Thanks.
- Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes3y
Yes, you should require it.
The hard part is tracking compliance. The tenant could move in on Monday and cancel their policy on Tuesday. The way to avoid this is require them to add the Landlord as "Additional Interest" on the policy. If the policy ever lapses or is canceled, you'll be notified.
The DIY Landlord Book4.7244 Reviews - Sitting on the internet is not going to get it done You need to connect with those doing deals You also need a PM co
Quote from @Brian Springfield:
Quote from @Bob S.:
Quote from @Brian Springfield:
Quote from @Bob S.:
Quote from @Brian Springfield:
I’m a “small time” landlord with SFHs.
Up to now I have not been actively requiring renters insurance in my leases.
I once had tenants with a large dog, and in that case I put a clause in the lease stating that they would acquire and hold renters insurance including pet coverage, but I never asked them to show me proof.
How mandatory is it? Am I setting myself up for grief by not taking it seriously?
What happens if the lease states they are required to have it but they never bother? Would that in any legal way absolve my liability and place it back on them?If not - how do you all make sure the tenant has renters insurance, that it covers personal property, liability, and animals, and how do you make sure they don’t turn around and cancel it right after they move in??
Thank you!!
Not going to get it for 99% of the tenants in Cleveland,,,,,, who cares about their items.
BTW I have done 100s and 100s and 100s of deals there so know a thing or two`
Sorry I’m not sure I’m following. Are you saying I shouldn’t require it, because most people in Cleveland don’t have a lot of valuables? They won’t therefore want to get Renters Insurance, thereby killing my pool of potential tenants?
No 99% of my tenants DO NOT have renters' insurance, I do not care. It seems you are trying to navigate Cleveland on your own, BIG mistake, it will not end well. You must have a team around you. I live on the beach in FL and have done 100s and 100s out there. Happy to make recommendations for you
I’m listening. :-)
Always have ears open to good advice. Thanks.
All the best - Investor · Lawrenceville, GA · Member since 2017 · 59 posts · 5 votes3y
Words of Wisdom = require it, put it in the lease AND make sure you are added to the policy.
I had great tenants for 2 years. I always asked to see the policy during contact signing.
They signed their 3rd year contract on Jan 2. I didn't ask to see.
February 20... they put a rubber backed floormat in the dryer... caught fire and caused $140k in smoke damage. Guess what? They didn't renew their policy.
Quote from @Chris B.:
Absolutely require it. I just cleaned up after a rough family. There was a lot of damage to the property caused by the tenants. I have a claim in right now with their renters insurance to get back $2700 owed.
You can demand it, however most tenants in Cleveland are not going to get it. Again, who cares about their items. I have done 1ks of move in and outs, I believe on ONE claim. I of course homeowners ins,
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