Tenant insurance to cover damages beyond security deposit
Hi, I have a single-family home in South Jersey. My last tenants left $15,000 worth of damage. The 1.5 months' security deposit only covered limited damages. Can I make it a requirement that tenants obtain a tenant's policy that includes damages beyond the security deposit with me as insured? I asked my current insurance carrier, and they do not offer such a policy. Can anyone provide a carrier that will? Thank you in advance.
Most Popular Reply
Hey Isabelle,
While renters insurance is absolutely something you can require in your lease, most standard renters policies are designed to cover the tenant's personal belongings and liability, not necessarily damage to your property caused by negligence beyond what your security deposit covers. The specifics will vary by carrier and policy language.
One thing I'd add from the real estate side: thorough tenant screening can often save you more money than any insurance policy. Good screening, strong lease language, and proper documentation during move-in and move-out are all part of the risk management puzzle.
Always happy to connect - my DMs are always open!