Requiring Renters Insurance: Landlord Rights and Best Practices

Answer

Many landlords ask, “Can I require renters insurance?” In most U.S. jurisdictions, you can make renters insurance a lease condition. By adding a clear policy requirement, you protect yourself against liability claims and ensure tenants cover their own personal property losses.

Why Require Renters Insurance?
Renters insurance typically costs between $15 and $25 per month and provides:

• Liability coverage if a tenant accidentally injures someone on the property.
• Personal property protection for the tenant’s belongings in case of fire, theft, or vandalism.
• Additional living expenses if the rental becomes uninhabitable due to a covered peril.

How to Include a Requirement in Your Lease:

• Draft a lease clause stating tenants must maintain renters insurance with at least $100,000 liability coverage (or your chosen minimum).
• Specify proof of insurance: require a certificate of insurance listing you as an “additional interested party” before move‑in.
• Set renewal terms: tenants must provide updated certificates on each policy anniversary or lease renewal.
• Outline consequences: clearly state lease violation penalties, such as late fees or eviction proceedings for missing coverage.

State and Local Considerations:
While no federal law prohibits such requirements, some states or municipalities may regulate insurance mandates. Buyers are recommended to verify local statutes or consult the department of insurance website in your state. You can find general guidance at the National Association of Insurance Commissioners.

Requiring renters insurance offers landlords peace of mind and shifts personal loss risk to tenants’ policies. It’s advisable to consult a licensed real estate attorney to ensure your lease language complies with state‑specific regulations and fair housing laws before finalizing your rental agreement.