Do you require tenant's to buy renter's insurance?

General Landlording & Rental Properties
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Do you require tenant's to buy renter's insurance?

James Barnhart
Rental Property Investor · Ocala, FL · Member since 2016 · 226 posts · 140 votes

I have seen this requirement on some property mgmt. websites.  My insurance agent recommends that I require it.

I always have recommended it to new tenants, but none ever have bought it, to my knowledge.

What are your thoughts?

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JD MartinBusiness Member
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Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
9y

Unless you are prepared to take action if they don't get it, and/or cancel it, I wouldn't bother. Action means that you will take failure to ensure as grounds for eviction. Keeping up with who has and has not kept up their renters insurance and evicting those who failed to get it, or keep it, would be nothing short of aggravating. We recommend it and leave it at that, and maintain our own good insurance policies. If a place burns down or is hit by a meteorite, and they lose all their stuff because they didn't have renter's insurance, oh well. 

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  • Tracy D.
    Investor · Neptune Beach, FL · Member since 2015 · 143 posts · 172 votes
    9y

    I require insurance, particularly liability. In fact, when I sign a year lease, I require the tenant have the full year policy paid in advance before I hand over the keys. At lease renewal, I require the same thing. And yes, I would be prepared to evict for lapse in policy. I don't intend to ever pay for anything my tenant should be liable for.

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  • Nathan G.
    Investor · Prosper, TX · Member since 2018 · 15 posts · 3 votes
    6y
    Originally posted by @JD Martin:

    Unless you are prepared to take action if they don't get it, and/or cancel it, I wouldn't bother. Action means that you will take failure to ensure as grounds for eviction. Keeping up with who has and has not kept up their renters insurance and evicting those who failed to get it, or keep it, would be nothing short of aggravating. We recommend it and leave it at that, and maintain our own good insurance policies. If a place burns down or is hit by a meteorite, and they lose all their stuff because they didn't have renter's insurance, oh well. 

    I like this position and it makes the most sense to me.

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  • Rob B.
    Chicago, IL · Member since 2018 · 546 posts · 227 votes
    6y

    Hi James, 

    It isn't uncommon for most standard leases to include a clause about requiring tenants to have renter’s insurance. Most major renter’s insurance carriers have policies that will have at least the basics covered, but definitely have your tenant get a few different quotes and do some cross-product analysis. I personally really like Lemonade Home & Renter's insurance, but that's me. Tenants can easily get a quote and they find it to be super affordable (with a pretty incredible UX as well). I hope this information helps! 

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  • Account Closed
    San Jose, CA · Member since 2015 · 4k+ posts · 3k+ votes
    6y

    When I was a property manager prior to retirement, we did not require renters insurance, though our contract explained why it would be a good idea and that the owner wasn't liable for damages, etc.

    So, what happens when a pipe backs up and causes damage to the tenants' goods, and the tenant has to move out overnight until repairs can be made to carpets, etc.?  The tenant freaks out and doesn't understand that they're out of pocket because they chose not to buy renters insurance.

    If it was up to me, based on my experience as an apartment manager, I would simply require it.  It's legal and saves major headaches if there are problems.

    Ironically, in the above situation, the owner (being a soft-hearted man) paid the tenant the equivalent of a one-night stay in a decent local motel.  She chose to take the money and stay with a friend - after freaking out that she had "nowhere to go."  Live and learn.  Hence, I'd require insurance, if it was up to me.  

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