Minimum Amt. of Renter Insurance You Require for your Tenant

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Minimum Amt. of Renter Insurance You Require for your Tenant

Simond Wong
Investor · Oklahoma City · Member since 2019 · 57 posts · 5 votes

Hi Bigger Pocket Friends! 

As a landlord, what is the minimum amount/requirement that your tenant must obtain as part of their policy and coverage? 

There are different nuances of a renter's insurance policy and coverage. So what do you tell your tenant so they can work with their insurance agent and get a policy that satisfies your renters insurance requirement as landlord? 

I am asking my prospective tenant to get renter's insurance, but I am not sure what to communicate to them so they can get the right policy and coverage. 

Thank you all in advance!

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Kenneth GarrettPro Member
Investor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes
6y

@Simond Wong

I require renters insurance of 30K for personal property and 100K for liability.  I had a fire in a unit and the tenants lost everything.  I could have used there liability coverage to cover some of the damage.

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  • Jason Lee
    Member since 2020 · 4 posts · 0 votes
    6y

    I don't require renters insurance.  

    An insurance agent would be happy to explain coverages to tenants.

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  • Carleton C.
    Member since 2020 · 53 posts · 22 votes
    6y

    I require tenants to have renters insurance, but I don't have a required amount of coverage. I let them determine that with the agent whom they buy the insurance from. I also require them to have me listed as additional interest on the policy so that I am notified if there is a lapse or cancellation.

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  • Michael Noto
    Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
    6y

    The amount of renters insurance they get will be up to them. They are insuring their stuff so whatever they feel is necessary. You just want to make it clear to them that getting renters insurance is a good idea because your property insurance does not cover their belongings. Let them take it from there. 

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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    6y

    I require $100,000 liability. The insurance I offer through my company also provides up to $5,000 in accidental pet damage, $5,000 for bed bugs, and a few other nice features.

    The amount of coverage they have for personal belongings doesn't matter a bit to me.

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  • Greg M.
    Rental Property Investor · Los Angeles, CA · Member since 2017 · 2k+ posts · 5k+ votes
    6y

    I require a minimum of $100K in liability insurance and me listed as an Additional Interest. 

    While I would like for my tenants to insure their personal property, since if it all gets destroyed they will be focusing their funds on replacing it instead of paying me rent, I don't require this coverage. So far most of my tenants have purchased wisely and had some coverage for their personal property. 

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  • Kenneth GarrettPro Member
    Investor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes
    6y

    @Simond Wong

    I require renters insurance of 30K for personal property and 100K for liability.  I had a fire in a unit and the tenants lost everything.  I could have used there liability coverage to cover some of the damage.

    1Reply
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