Tenant not buying renter's insurance

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Tenant not buying renter's insurance

Mei Zhu
Member since 2024 · 34 posts · 12 votes

Hi, my tenant is not buying a renter's insurance as originally agreed upon signing the lease but the lease does not state the consequence of if the tenant does not buy. Should I buy it and charge it to the tenant's rent due? I live in NJ. It is required by the HOA. what would you do? I don't want to keep chasing the tenant down and make it a habit. thanks

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Jaron WallingPro Member
Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
9mo

@Mei Zhu I would have required proof of the renter's policy BEFORE handing over the keys. 

Technically they broke the lease, right? It's up you at this point but I'd get something in writing that states if the HOA finds out (and actions get taken) the tenant is subject to eviction.

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  • Jaron WallingPro Member
    Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
    9mo

    @Mei Zhu I would have required proof of the renter's policy BEFORE handing over the keys. 

    Technically they broke the lease, right? It's up you at this point but I'd get something in writing that states if the HOA finds out (and actions get taken) the tenant is subject to eviction.

    6Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    9mo

    Talk to the HOA about whether or not the tenant requires insurance. You as the home owner may need it, but a tenant may not.

    As you don't have it written in the lease, it is going to be harder to enforce.

    2Reply
  • Bill B.
    Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    9mo

    Your lease doesn’t need consequences listed it just needs the requirements. Assume your lease says no dogs and they have 6. It might not have consequences listed. But you simply issue a notice to cure.  Honestly, it’s probably time to hire a PM. 1) This should have been handled before they got the keys. 2). They should have been given 1 chance to cure their “mistake” 3) The third time should have been a written warning with consequences. You’ve already shown you’re not going to enforce the rules. What’s in it for the tenant to spend that money if there’s no penalty.  

    4Reply
  • Lydia Winn
    Member since 2025 · 91 posts · 55 votes
    9mo

    Great question. Does your lease allow you to buy insurance for them on their behalf? That caveat is included in my leases and it allows me to simply charge them for insurance and buy it on their behalf, plus charge them a small convenience fee. 

    0Reply
  • James Mc Ree
    Rental Property Investor · Malvern, PA · Member since 2016 · 1k+ posts · 938 votes
    9mo

    Give them written notice of the violation and a choice to buy the insurance, move out or be evicted. They might do you a favor and move as they seem more likely to be problem tenants.

    1Reply
  • David PeschioBusiness Member
    Richmond, VA · Member since 2019 · 358 posts · 181 votes
    9mo

    Agree with the others - keys are never handed out until things like insurance, utilities, security deposts (collected) rents, etc... are satisfied.  Always easier then as opposed to chasing that down later.

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    • Theresa HarrisPro Member
      Member since 2019 · 15k+ posts · 11k+ votes
      9mo
      Quote from @David Peschio:

      Agree with the others - keys are never handed out until things like insurance, utilities, security deposts (collected) rents, etc... are satisfied.  Always easier then as opposed to chasing that down later.


      I agree though it is hard to tell if the tenant then cancels their insurance down the road.

      0Reply
  • Jake Handler
    Real Estate Agent · Morristown, NJ · Member since 2020 · 207 posts · 129 votes
    9mo

    Is the HOA chasing you down for this? In my experience managing HOAs, it would be uncommon for the board to enforce penalties for something like this. I would think that you purchasing a policy and back-charging your tenant for the policy you chose is absolutely not something you should do.

    1Reply
  • David PeschioBusiness Member
    Richmond, VA · Member since 2019 · 358 posts · 181 votes
    9mo

    @Theresa Harris We always also require that we are named on the policy so that way we are notified if thy cancel and or not renew.

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  • Adam BartomeoBusiness Member
    Real Estate Broker · Cape Coral, FL · Member since 2015 · 2k+ posts · 1k+ votes
    9mo

    Setting the expectation from the beginning is important. You should call the tenant and find out why they are refusing to purchase the necessary insurance. Truth be told, in NJ the tenant has the upper hand in the tenant/landlord relationship, and you will need to persuade them to get the insurance. Next time you may want to include it in the rent and purchase it for them.

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  • Allison Park
    Member since 2024 · 158 posts · 88 votes
    9mo

    Hi Mei, sorry to hear you are having that issue. If that requirement is in your lease, I would make the request formal / in writing. If you can get a template from a real estate attorney in your state that would be best. For future, ensure your lease explicitly calls out that you are not liable for their personal property or injury regardless of their having renters insurance. Also ensure the lease requires the tenant to abide by any HOA rules. The Property Management tool I use requires the tenant to upload proof of insurance so that is not skipped. Along with the formal notice I typically text them letting them know that they will be getting a formal notice and that you understand it might be a nuisance, but is required. Typically it is not too expensive so you can add that in to soften the blow. Basically formal letter so they know you mean business, text to be empathetic. To be honest, no one really likes buying insurance. You got this :)

    0Reply
  • Janice Carter
    Real Estate Broker · Atlanta · Member since 2024 · 1k+ posts · 608 votes
    9mo

    Since the lease does not clearly state the consequences for failing to obtain renter’s insurance, you generally should not purchase it on the tenant’s behalf and charge it to their rent as that could create legal and accounting issues, especially in New Jersey where tenant charge rules are strict.

    Also, renter’s insurance is an additional expense to the tenant and it is simply another way for insurance companies to make money while offering no direct benefit to the landlord. A well-written lease should already provide sufficient protection for the landlord through liability clauses, indemnification language and proper property insurance. In my opinion, renter’s insurance should be optional, not mandatory.

    1Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
    9mo
    Quote from @Mei Zhu:

    Hi, my tenant is not buying a renter's insurance as originally agreed upon signing the lease but the lease does not state the consequence of if the tenant does not buy. Should I buy it and charge it to the tenant's rent due? I live in NJ. It is required by the HOA. what would you do? I don't want to keep chasing the tenant down and make it a habit. thanks


     So many mistakes:(

    1) Proof of policy, BEFORE keys
    2) You added to policy as, "Additionally Insured", so:
    - You get notified if cancelled
    - You get coverage via their policy before you have to engage your policy
    3) Your lease should clearly state if required and that you can acquire and pay for it - then charge them to reimburse your outlay +  Processing Fee for your time & effort
    4) Should be also clearly listed as a lease violation allowing you to immediately start eviction proceedings for noncompliance.

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    2Reply
  • Alan AsriantsBusiness Member
    Real Estate Agent · Philadelphia, PA · Member since 2019 · 1k+ posts · 1k+ votes
    9mo

    Are they refusing, or do they not understand the costs associated with renters insurance? A lot of tenants assume it’s expensive, when in reality it can cost only a couple hundred dollars per year.

    If renters insurance is explicitly required in the lease and the tenant refuses to obtain it, they are in violation of the agreement, and you’re within your rights to serve a notice to cure or quit.

    Even if a tenant provides a declaration page, they could cancel the policy the next day. Ultimately, it’s the tenant’s responsibility to maintain coverage for the duration of the lease. If they don’t, they’re in breach.

    In this situation, I’d first ask for a copy of the policy. If they push back, explain that the cost is minimal and that it also protects their belongings in the event of something serious like a fire or storm. Start from a positive, educational angle and assume there may be a misunderstanding.

    If they still refuse, you need to be firm and clearly communicate that they’re breaking the lease. Be direct, concise, and emotionally controlled. Being firm also means saying less. If they sense that you are serious and not screwing around they will likely fold. 

    Good luck.

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  • Shawn McenteerBusiness Member
    Realtor · Boonton Township, NJ · Member since 2013 · 2k+ posts · 1k+ votes
    9mo

    @Mei Zhu have you tried educating the tenant on the importance renters insurance is for them?  No one plans for things to go wrong that's why insurance exists,  perhaps try selling them on the benefits of how a small fee each month can protect them big.   If they don't buy and it is clear in the lease well then they are breaking the lease terms.

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    0Reply
  • Mei Zhu
    OP
    Member since 2024 · 34 posts · 12 votes
    9mo

    thank you for all the feedbacks.

    0Reply
  • Joel Miller
    Member since 2011 · 152 posts · 113 votes
    9mo

    Yes, you want to require proof of insurance before you let them move in with you listed on the policy as Additional Interest so that you are notified if the policy is going to be cancelled (like for nonpayment of premium). At least in PA, Additional Interest is better than Additional Insured because it accomplishes the same thing in terms of notification that the policy is going to lapse, for example. Additional Insured is a no-no because the insurance carrier may refuse to pay an otherwise legitimate liability claim from the tenant to the landlord because insurance companies don't pay claims between parties that are insured by the same policy. This concept is why they don't pay claims between a husband and wife on the same auto or homeowners policy. I know this from personal experience with a renters policy on which we were listed as Additional Insured. To all those reading this, check with your tenants' carriers and see whether they would pay if you are listed as Additional Insured. If they won't, then have them change your designation on the policy.

    1Reply
    • Owen RosenBusiness Member
      Professional · Clinton Township, MI · Member since 2015 · 699 posts · 264 votes
      9mo
      Quote from @Joel Miller:

      Yes, you want to require proof of insurance before you let them move in with you listed on the policy as Additional Interest so that you are notified if the policy is going to be cancelled (like for nonpayment of premium). At least in PA, Additional Interest is better than Additional Insured because it accomplishes the same thing in terms of notification that the policy is going to lapse, for example. Additional Insured is a no-no because the insurance carrier may refuse to pay an otherwise legitimate liability claim from the tenant to the landlord because insurance companies don't pay claims between parties that are insured by the same policy. This concept is why they don't pay claims between a husband and wife on the same auto or homeowners policy. I know this from personal experience with a renters policy on which we were listed as Additional Insured. To all those reading this, check with your tenants' carriers and see whether they would pay if you are listed as Additional Insured. If they won't, then have them change your designation on the policy.


       This is a common argument on this forum (Interest vs. Insured) and I concur that in these cases the property owner should be Additional Interest rather than Additional Insured.  Thank you for the personal anecdote!

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  • Jim Johnson
    Real Estate Agent · Memphis · Member since 2026 · 611 posts · 356 votes
    9mo

    This is really a lease compliance issue. Since the lease requires renter’s insurance but doesn’t outline consequences, you generally can’t just buy a policy yourself and charge the tenant unless the lease specifically allows that.

    Even with the HOA requirement, enforcement typically has to follow proper notice procedures. The cleaner approach is a formal written notice that they're out of compliance, with a deadline to provide proof. If they still don't, it becomes a lease violation and you follow your normal process from there.

    For the future, many owners add language allowing them to obtain coverage and bill the tenant if proof isn’t provided. Without that, it comes down to documentation and consistent enforcement.

    0Reply
  • Earl WhitePro Member
    Attorney · Rutherford, NJ · Member since 2020 · 60 posts · 37 votes
    9mo

    Check provisions in the lease that are more general, for example, if tenant fails to fullfill obligations under the lease landlord can fullfill them and charge the cost as additional rent. Given rental insurance is quite low, I'm not sure a strict "enforcement" via eviction makes any sense if they are otherwise a good. I suppose a letter from an attorney could do the trick but again the cost of even a few hundred dollars is more than the insurance.

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    0Reply
  • Jim Johnson
    Real Estate Agent · Memphis · Member since 2026 · 611 posts · 356 votes
    9mo

    This is really a lease compliance issue. Since the lease requires renter's insurance but doesn't spell out consequences, you generally can't just buy a policy yourself and add it to their rent unless the lease specifically allows that. 

    Even with the HOA requirement, enforcement usually has to follow proper notice procedures. The cleaner approach is sending a formal written notice that they're out of compliance and giving a deadline to provide proof. If they're still don't, it becomes a lease violation and you follow your normal process from there.

    For future leases, many owners add language allowing the landlord to obtain coverage and bill the tenant if proof isn't provided. Without that clause, this comes down to documentation and consistent enforcement, not chasing them informally. 

    0Reply
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