Specialist · Fort Collins, CO · Member since 2018 · 557 posts · 191 votes
8y
Hi Alvin! I would definitely recommend requiring renter's insurance even if your property is insured. The apartment complex I worked for required all tenants to have a minimum of $100K liability and you'd be surprised at how many times we had to use their policy for some sort of damage to the property (i.e. flooding, fires, etc.). I would strongly recommend requiring renter's insurance for your tenants. Without renter's insurance you’re putting yourself, your rental, and your savings at risk. Requiring renters insurance protects you from expensive renter accidents, injuries on your rental property, and costly lawsuits that can easily pop up in the landlord business
Insurance Agent · Norwalk, CT · Member since 2016 · 2k+ posts · 1k+ votes
8y
Alvin,
There are a couple of reasons why it makes sense to require the coverage:
1. if they cause an injury to a third party and do not have insurance, the injured party's attorney will be looking for a reason why you were somehow at fault
2. if a loss such as a fire damages the property and their contents are destroyed, your policy will not cover their contents. Without renters coverage they will be facing a big expense to replace clothing, furniture, etc. That may impact their ability to pay the rent.
3. If a loss causes them to be unable to live in the unit until repairs are done who will pay for their hotel, meals etc. The loss of use coverage on a renters policy will but your policy will not. Let may expect you to pay it even though normally all the lease requires is that you do not charge rent for the time they can occupy the unit.
Flipper/Rehabber · Yardley, PA · Member since 2015 · 451 posts · 307 votes
8y
Yes I require it as well (I invest in Philadelphia, PA). As a side note, I use COZY.com to collect rent and they now offer tenants to purchase renters insurance directly through their site, which then streamlines things more. I just did this with my latest rental (before I gave tenant option of comparing quotes and giving me a copy of final policy), but now I prefer the cozy.com way instead.. much easier to use and I can see their insurance certificate, etc online. I notify all tenants applying, in advance, that renters insurance for 100K is a requirement for occupancy.
This also helps deter some people just fishing around / wasting your time
Rental Property Investor · Edmond, OK · Member since 2017 · 1k+ posts · 1k+ votes
8y
In Oklahoma, I've been told we aren't allowed to "require" the tenants have renters insurance unless they have a pet. But I strongly recommend every tenant get renters insurance. I let them know that if anything catastrophic happens to the rental, NONE of their stuff will be replaced under my policy. So to protect their items, I try to get them to see how it's definitely worth it to spend the $20-$30/month to get their own policy.
Real Estate Broker · Tulsa- OKC Oklahoma · Member since 2017 · 868 posts · 801 votes
8y
While you may not be able to force renters insurance you can require liability insurance. With the right policy this will include some coverage for renters Insurance as well.