Updated: May 25, 2025
Advertising & Editorial Disclosure
Landlords can ask to be listed as an additional interested party on the tenant’s policy to get notified if the coverage is canceled or changed.
Requiring renters insurance can reduce landlord liability if a tenant accidentally causes damage to another unit or injures someone on the property.
Some landlords may require higher coverage limits or pet liability add-ons if the rental has higher risk, like shared spaces or furnished units.
Landlords should require a minimum of $20,000 in personal property coverage and $100,000 in liability coverage from tenants.
This renters insurance requirement benefits both parties. The tenant gains financial protection for their possessions and for any damages they may cause. The landlord reduces potential disputes, limits financial risk and avoids using their own policy to handle tenant-related incidents.
Understanding standard renters insurance coverage can help landlords choose appropriate limits:
Landlords should ask for proof of renters insurance before lease signing. They should also consider requiring tenants to list them as an additional interested party so they are notified if the tenant cancels or changes the policy. Providing clear guidance on how to get renters insurance can also reduce friction and help tenants meet the requirement faster.
While $20,000 in personal property coverage is a good starting point, landlords can increase that amount based on the tenant’s lifestyle. For example, if a tenant owns $50,000 worth of personal items, the policy should reflect that value.
High liability coverage is especially important. If a tenant causes damage, like starting a fire, or if someone gets hurt on the property, liability coverage helps cover the costs. This keeps landlords from getting drawn into costly legal issues.
Requiring renters insurance offers several key benefits for landlords. It enhances property protection, reduces financial risks and promotes responsible tenant behavior. Additionally, it gives the tenant and the landlord peace of mind. Here are the advantages at a glance:
Renters insurance ensures that tenants' personal property is covered in case of damage or loss, reducing the likelihood of disputes with landlords over responsibility for such incidents.
When tenants have renters insurance, landlords can avoid financial burdens caused by tenant negligence or accidents. The tenant’s liability coverage can pay to replace damaged personal belongings or cover costly medical expenses if they are held liable for an accident.
Requiring renters insurance promotes tenant responsibility and accountability in the rental property, fostering a more respectful and careful tenancy.
Understanding your tenant’s lifestyle can give you insight into the minimum amount of renters insurance coverage to require. For instance, if your tenant frequently has guests over or owns a dog, you might require higher liability limits. Likewise, you might also want to increase personal property coverage limits if they own highly valuable items.
If your tenant owns a dog, there might be a higher risk of dog bites to guests or neighbors. Therefore, they might need to increase liability coverage in their policy.
If your tenant has a swimming pool, there might be a heightened risk of drowning or water damage, and they might need to increase their coverage limits.
If your tenant owns a trampoline, it could be dangerous, as it might cause bodily injuries to the tenants or their visitors. It may be necessary to increase coverage.
If your tenant participates in extreme sports that involve practicing with fire or dangerous tools and equipment, you should require them to have comprehensive additional coverage.
If your tenant has expensive sports equipment, collector’s items, rare art pieces or costly jewelry, they should purchase higher personal property coverage limits or get scheduled personal property coverage to ensure valuables are covered.
You can request to be included as an interested party to see the details and coverage of your tenant’s renters insurance. You, as the landlord, will also receive updates about your tenant’s policy, whether it’s canceled, renewed or if the limits are increased.
While landlords have the authority to require their tenants to have renters insurance, landlords themselves need to secure landlord insurance. These two types of insurance serve different purposes, but they play vital roles in safeguarding the interests of property owners.
Renters insurance primarily focuses on protecting tenants and their personal belongings, while landlord insurance is tailored to protect landlords from specific risks associated with rental properties.
Aspect | Renters Insurance | Landlord Insurance |
|---|---|---|
Property Structure Coverage | Does not cover the structure of the rental property. | Covers the structure of the building and associated outbuildings. It also covers repairing accidental damage caused by tenants. |
Personal Property Coverage | Covers the tenants' possessions in the event of fire, theft, vandalism or other events covered by the agreement. | Does not cover the personal property inside the rental units, as these belong to the tenants. However, if you furnish the unit or keep landscaping equipment on the property, you can add those items to the policy for an extra fee. |
Liability Coverage | Provides coverage for injuries that occur in the rental property resulting from the tenant's negligence and for damage they might cause to another property. | Provides coverage for injuries caused to tenants or property damage resulting from ownership, maintenance and use of their rental properties. |
Loss-of-Use and Loss-of-Rent Coverage | Offers coverage for the tenant’s temporary home and additional expenses if the rented property becomes uninhabitable due to a covered event. | Offers coverage for loss of rental income if the property is uninhabitable due to a covered peril. Some policies also cover rent when tenants don’t pay. |
Designed For | Designed for individuals who are renting a condo unit, apartment or any rented space. | Designed for properties that are rented out regularly. |
As a landlord, you need to make sure your property is well-maintained and safe to protect yourself from potential liability issues. Here are some essential tips to help you mitigate risks and safeguard your interests:
Conduct routine inspections and maintenance to address any potential hazards promptly. Regular upkeep reduces the likelihood of accidents and tenant injuries.
Make sure the property meets safety standards, including proper lighting, secure locks and functional smoke detectors. This proactive approach can prevent accidents and legal disputes.
Screen prospective tenants carefully to minimize the risk of leasing to individuals with a history of property damage or legal issues.
Invest in landlord liability insurance to provide additional protection in case of tenant accidents or disputes. This insurance can cover legal expenses and settlements if necessary.
By implementing these practical measures, landlords can significantly reduce their liability exposure and maintain a secure rental environment for themselves and their tenants.
Landlords are allowed to require renters insurance as part of the lease. This helps protect both their property and the tenant in case of accidents or damages. While renters insurance doesn’t cover the unit itself, it provides coverage for the tenant’s belongings and liability.
Landlords should require $20,000 in personal property coverage and $100,000 in liability. These requirements can reduce risk for both parties while making sure tenants have appropriate financial protection.
Renters insurance requirements help landlords reduce risk and ensure tenants are protected. Here are answers to common questions about setting coverage limits.
Yes, in most states, landlords can make renters insurance a condition of the lease.
Many landlords require at least $20,000 in personal property coverage and $100,000 in liability coverage.
Yes, landlords should request documentation before move-in and verify that coverage remains active during the lease.
Yes, landlords can ask to be added as an additional interested party to receive policy updates without affecting coverage.
Without renters insurance, tenants may be unable to cover losses or liability. Landlords may also face delays or disputes when damage occurs.
Why Trust MoneyGeek?
We obtained information from Quadrant Information Services and examined rates of customer and claim satisfaction from the top industry assessments, J.D. The National Association of Insurance Commissioners (NAIC), AM Best, and Power. In order to provide the best renters insurance solutions for different renter profiles and demands, as well as at the national and state levels, MoneyGeek developed a ranking methodology to compare the data.
Renters Insurance Profile
In this study, MoneyGeek focused on a particular profile of renters, characterized by:
Moreover, the research also encompassed scenarios involving renters with varying credit histories and different records of insurance claims.
Renters’ Insurance Coverage Details
Calculations for the average home insurance rates were based on the following policy specifics:
Additionally, MoneyGeek's investigation included an exploration of policies offering broader coverage ranges, extending from $20,000 to $100,000 for personal property, liability coverage ranging from $100,000 to $300,000, and deductibles varying between $500 and $2,000.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
