Rental Insurance: How much liability coverage do you ask for?

Question

I have a tenant that will be applying for renters insurance. How much do you ask for the liability coverage to be when you ask your tenants to get rental insurance?

Also, any idea on what the monthly cost for renters insurance?

John T. · Answer

I require my tenants to buy and maintain Renters Insurance with $300,000 in liability coverage.  Just think about the worst damage a tenant can cause, such being liable for setting your rental house on fire or burning down your rental house and the neighbor's house, etc.

Tracy Minick · Answer

Keep in mind:

Renter's insurance is for the tenant's belongings. I always strongly suggest they have this.

What you need to have is: Landlord Liability insurance from your tenant. We require $100k

Sara Valentine · Answer

Renters insurance price will vary depending on the value of the renters' personal possessions (furniture, clothing, artwork, jewlry, etc... whatever the renter chooses to have the policy cover) in the rental  the liability amount will be added to that base.  Ask your personal insurance agent (the agent you use for your property insurance and for your personal home, car, etc...) what they recommend for liability coverage in your rentals.  In adddition to requireing my tenants to have a renters' policy, I have umbrella insurance that provides additional liability protection (above and beyond what your homeowners provides for your rental). It is like an umbrellas of protectionover all your assets. Ask your insurance agent about that.  Both the liability portion of the renters insurance (which your renter will pay) and the umbrella policy are generally quite reasonable, but I am sure that varies also with where you live and own property.