Tenant Rental Insurance to cover damage

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Tenant Rental Insurance to cover damage

Becca Barnes
Member since 2018 · 8 posts · 0 votes

I am about to sign a lease for my first rental property this weekend!  There is a question of how much rental insurance the tenant should get to cover any amount of damage to the property on top of loss of their own possessions.  What is the typical amount or is there a percentage of coverage based on the value of the house? Exact wording in lease: "In addition to coverage for damage or loss to Tenant's personal property in such amount as Tenant may determine, the policy shall include coverage for bodily injury or property damage for which Tenant may be liable for in the amount of _______?

Thanks for any advice you can give!

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Jason BottPro Member
Insurance Agent · Nationwide · Member since 2014 · 2k+ posts · 1k+ votes
8y

@Becca Barnes

The coverage you want to be concern about is General Liability.  That coverage extends coverage to the landlord for against claims of bodily injury against the landlord and tenant as well as property damage to your building that the Tenant may be liable.

The standard General Liability limit you want your tenants Renters insurance to carry is $100,000.

hope that helps,

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  • Brie SchmidtBusiness Member
    Moderator
    Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
    8y

    @Becca Barnes - is there an minimum amount required by the landlord?  I would ask them 

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  • Becca Barnes
    OP
    Member since 2018 · 8 posts · 0 votes
    8y

    I am the landlord and this is my first property. I was not sure if there was a percentage that is typical of covering.

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  • Michael Pepe
    New Haven, CT · Member since 2017 · 30 posts · 17 votes
    8y

    Talk to your agent about the correct amounts, but you should also consider requiring the tenant to add you (or your LLC if that's the owner of the property) as an additional insured on their policy for bodily injury or property damage arising out of their use of the property. This means that if you get sued by someone is injured in their apartment, the tenants insurance company will have to defend you and pay before yours does.

    Its possible their policy may already provide for this, but only if you require it in your contract, so it's important to require it.

    1Reply
  • Katie Stewart
    Specialist · Fort Collins, CO · Member since 2018 · 557 posts · 191 votes
    8y

    At the apartment complex where I worked, we required a minimum of $100,000, but I know some places will require a minimum of $300,000! I'd base it off of the property (i.e. how much coverage you think it needs).

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  • Jason BottPro Member
    Insurance Agent · Nationwide · Member since 2014 · 2k+ posts · 1k+ votes
    8y

    @Becca Barnes

    The coverage you want to be concern about is General Liability.  That coverage extends coverage to the landlord for against claims of bodily injury against the landlord and tenant as well as property damage to your building that the Tenant may be liable.

    The standard General Liability limit you want your tenants Renters insurance to carry is $100,000.

    hope that helps,

    2Reply
  • Becca Barnes
    OP
    Member since 2018 · 8 posts · 0 votes
    8y

    @Jason Bott

    Thanks so much! I will do some checking on my end. 

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  • Becca Barnes
    OP
    Member since 2018 · 8 posts · 0 votes
    8y

    @Katie Stewart  Thanks for the insight!

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