How much do you require tenant to insure for liability?

Question

How much do you require tenant to insure for liability, hazard (injuries, etc.) not including their personal contents? 50k, 100k, 500k?

I'm reviewing the BP provided Lease Agreement & not sure how much to put in that $_______. I would try to add a photo of the paragraph but I don't see an option to add one here.

TIA!

Cameron Tope · Answer

@Cindy Mastin We recommend (but don't require) our tenants to have insurance, however we make them sign an addendum that they understand the risk of not having it.

Matt Moylan · Answer

(I'm in the insurance/portfolio risk management business)

I typically suggest to my investor clients to require the tenant to carry at least 300k.  The minimum liability amount most insurance companies have available is 100k and bumping up to 300k is only a few dollars a year.

Mike McCarthy · Answer

Most renter insurance policies are 100K by default. This is what I’d use.

I’m sure it can be increased... but this should cover most reasonable issues.

Cindy Mastin · Answer

@John Mocker

WOW! Great info!

Thank you!

Cindy Mastin · Answer

@Mike McCarthy

Good to know!

Thank you!

Cindy Mastin · Answer

@Cameron Tope

Awesome. Thanks!

Cindy Mastin · Answer

@Matt Moylan

Great! Thank you!

Cindy Mastin · Answer

@Sam Shueh

Thanks. I am aware if that but was curious about additional liability.

Sam Shueh · Answer

They pay rental insurance for their personal properties.

How much do you require tenant to insure for liability?

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