Why You Should Require Renters Insurance

By Kailey Walters on June 7, 2021

Renters insurance is highly valuable for both tenants and landlords. In a nutshell, it makes sure that your tenants’ property is protected, mitigates disputes over who pays for what if the tenant’s possessions are stolen or damaged while on the property, minimizes how much you pay for property damages due to tenant negligence, and reduces your liability in legal claims. Now let’s take a closer look at these reasons as to why you should require your tenants to have renters insurance.


Renters insurance is another layer of protection for you.

As a landlord, you have your own insurance in case any damage, theft, or loss occurs on the rental property — but renters insurance can protect you even further in a number of scenarios. When your tenants are insured, you have extra protection because renters insurance protects your tenant’s property if it is damaged or stolen, protects your tenant in case of a natural disaster, helps keep insurance premiums low, and mitigates issues with pets on the property. In this way, protecting your tenants will lead to less of a headache for you if any of these difficult situations ever arise.

Your tenants will feel secure knowing that their property and possessions are protected.

apartment, possessions, property


Renters insurance doesn’t seem like a super important thing to have … until something terrible happens, like if they walk into their apartment and find it flooded, or all their stuff is stolen. In situations like these, renters insurance is important because it can provide protection and coverage if the tenant’s personal property is stolen, lost, or destroyed; if the tenant hurts someone or damages another person’s property; and if someone injures themselves in the tenant’s unit. If you want to help your tenants out and make sure they are protected in case any unexpected misfortunes arise, it’s a good idea to require them to have renters insurance. They’ll thank you in the long run.

Educating your tenants will lead to less of a burden on you.

When you require your tenants to have renters insurance, you are providing an opportunity for them to learn about how renters insurance can be beneficial for them. When they are aware of how they are being protected by renters insurance, they will be less likely to come to you with headache-inducing problems. As a result, both you and your tenants can have peace of mind knowing that renters insurance is helping to protect their property and possessions.

You’re allowed to require renters insurance.

Another great reason to require your tenants to have renters insurance is simply that you are allowed to do so. You can require renters insurance as a term of a new lease or lease renewal; however, you should certainly check with your local and state laws before adding a clause to your lease that requires renters insurance.

Renters insurance reduces the risk of a lawsuit against you.

If you are relying solely on your own insurance or liability policy, chances are that you won’t be covered in the event that your tenant’s property is damaged or someone gets injured on your tenant’s property. However, if your tenant already has renters insurance, their personal property will be protected against damage or loss, and they won’t be liable if someone is injured on their property. As a result, if they are protected well, you’re also protected, which is a huge benefit for you.

Renters insurance protects you if there is property damage.

If your tenant’s property is damaged and they have no other way to recover the loss (i.e., no renters insurance), they most likely will come after you, the landlord, for damages. This is certainly a less than ideal situation, as your own landlord insurance will most likely not cover the tenant’s personal property — which means it’s up to you to figure out how to handle the damages. However, if your tenant has renters insurance, the damage or losses will be covered, and both you and your tenant will have peace of mind and one less thing to worry about.

Requiring renters insurance is really important, as it will be highly beneficial to both you and your tenants in case anything unexpected happens, like if their property is damaged or stolen or if a natural disaster strikes. Everyone involved will feel much more secure knowing that their property is protected under renters insurance.

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