Can Landlords Require Renter’s Insurance?

Most landlords want their renters to have the necessary protections to minimize risk. Many encourage their tenants to purchase renters insurance for this need. Can they require it, though? The fact is, some landlords do require it. Depending on state laws, they may have the ability to do so. The key here is to recognize why this is actually a good thing.

You Lack Protection When You Rent

The simplest example of the value of renter’s insurance happens in a fire. Somehow, a fire breaks out. The building suffers significant damage. The landlord’s property insurance pays for the damage to the building. The walls and structure itself may need repairs. However, that landlord’s policy doesn't covers what is inside your home that belongs to you. Your furniture, your children’s toys, and even pots and pans have no coverage under your landlord’s policy.

Renter’s insurance generally covers this. If in place when the event happens, the policy provides coverage for the possessions you lose. This means you can buy new items to replace the old. Without renter’s insurance, you may find it hard to start over again. How will you buy an entirely new house full of furniture, for example?

Why Do Landlords Require It?

Why would a landlord care if you have coverage or not? There are a wide range of benefits.

For example, you may try to claim some of your loss from the landlord. This becomes a costly battle that many renters lose.

Coverage also helps ensure that only financially-responsible tenants live within the space. Landlords want individuals who take pride in their home and steps to maintain and protect it. It also helps to reduce the deductible of the landlord when there is a policy in place (due to lowered risks).

At the heart of it all, though, is that renters insurance really is usually mandatory coverage. There are risks – those associated with property loss and liabilities– that need consideration. Without this type of coverage, the tenants in the space are at risk.

Take a closer look at why renter’s insurance can benefit you. Then, invest wisely. Work with an agent to find a policy fitting to what you own. This can and should give you peace of mind. It can also be a very affordable way to gain sizable protections. Why put yourself and your belongings at risk? Meet your landlord’s requirements instead with renter’s insurance.

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