Updated: October 21, 2025
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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 requirement benefits both parties. Tenants gain financial protection for their possessions and any damages they cause. Landlords reduce potential disputes, limit financial risk and avoid using their own policy for tenant-related incidents.
Standard renters insurance coverage helps landlords choose appropriate limits:
Ask for proof of renters insurance before lease signing. Require tenants to list you as an additional interested party so you're notified if the tenant cancels or changes the policy. Clear guidance on getting renters insurance reduces friction and helps tenants meet the requirement faster.
While $20,000 in personal property coverage is a good starting point, you can increase that amount based on the tenant's lifestyle. If a tenant owns $50,000 worth of personal items, the policy should reflect that value.
High liability coverage is important. If a tenant causes damage, like starting a fire, or if someone gets hurt on the property, liability coverage covers the costs and keeps you out of costly legal issues.
Requiring renters insurance offers several benefits for landlords. It enhances property protection, reduces financial risks and promotes responsible tenant behavior. It also gives tenants and landlords peace of mind.
Renters insurance covers tenants' personal property in case of damage or loss, reducing disputes with landlords over responsibility.
When tenants have renters insurance, you avoid financial burdens from tenant negligence or accidents. The tenant's liability coverage pays to replace damaged personal belongings or covers medical expenses if they're held liable for an accident.
Requiring renters insurance promotes tenant responsibility and accountability, fostering more respectful and careful tenancy.
Your tenant's lifestyle gives you insight into the minimum renters insurance coverage to require. If your tenant has frequent guests or owns a dog, require higher liability limits. Increase personal property coverage limits if they own highly valuable items.
If your tenant owns a dog, there's higher risk of dog bites to guests or neighbors. They should increase liability coverage in their policy.
If your tenant has a swimming pool, there's higher risk of drowning or water damage. They should increase their coverage limits.
If your tenant owns a trampoline, it poses injury risk to tenants or their visitors. Increase coverage accordingly.
If your tenant participates in extreme sports involving fire or dangerous tools and equipment, require comprehensive additional coverage.
If your tenant has expensive sports equipment, collector's items, rare art pieces or costly jewelry, they should buy higher personal property coverage limits or get scheduled personal property coverage for valuables.
Request to be included as an interested party to see your tenant's renters insurance details and coverage. You'll receive updates about your tenant's policy if it's canceled, renewed or if limits change.
While you can require tenants to have renters insurance, you need landlord insurance yourself. These two types serve different purposes but both protect property owners' interests.
Renters insurance protects tenants and their personal belongings. Landlord insurance protects you from specific risks 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. |
Keep your property well-maintained and safe to protect yourself from liability issues. These tips help you reduce risks and safeguard your interests:
Conduct routine inspections and maintenance to address potential hazards promptly. Regular upkeep reduces accidents and tenant injuries.
Ensure the property meets safety standards, including proper lighting, secure locks and functional smoke detectors. This prevents accidents and legal disputes.
Screen prospective tenants carefully to avoid leasing to individuals with a history of property damage or legal issues.
Invest in landlord liability insurance for additional protection in case of tenant accidents or disputes. This insurance covers legal expenses and settlements if necessary.
These measures reduce your liability exposure and maintain a secure rental environment for you and your tenants.
By implementing these practical measures, landlords can significantly reduce their liability exposure and maintain a secure rental environment for themselves and their tenants.
You can require renters insurance as part of the lease. This protects your property and the tenant in case of accidents or damages. While renters insurance doesn't cover the unit itself, it covers the tenant's belongings and liability.
Require $20,000 in personal property coverage and $100,000 in liability. These requirements reduce risk for both parties while ensuring tenants have appropriate financial protection.
Renters insurance requirements help you reduce risk and ensure tenants are protected. Check common questions about setting coverage limits below.
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, request documentation before move-in and verify that coverage remains active during the lease.
Yes, you can ask to be added as an additional interested party to receive policy updates without affecting coverage.
Without renters insurance, tenants can't cover losses or liability. You may also face delays or disputes when damage occurs.
Understanding landlord requirements for renters insurance starts with knowing what coverage tenants actually need and how much it costs. We analyzed renters insurance data to help landlords set appropriate coverage requirements that protect both their property and their tenants.
Our analysis included information from Quadrant Information Services and customer satisfaction data from J.D. Power, the NAIC and AM Best. We developed a ranking methodology to compare renters insurance solutions for different renter profiles at national and state levels.
Sample renter profile: We focused on renters with good credit scores who've been claims-free for over five years. We also examined scenarios with varying credit histories and different claim records.
Coverage details for rate calculations:
We also explored policies with broader coverage ranges, from $20,000 to $100,000 for personal property, liability coverage from $100,000 to $300,000, and deductibles 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.
