Is renters insurance required?

Renters insurance can be an essential safeguard for anyone living on someone else’s property. It not only helps protect your personal belongings but also provides liability coverage for certain types of bodily injury or property damage. Even if your landlord doesn’t require it, renters insurance can help provide financial security in unexpected situations.

What are the benefits of renters insurance?

• Compensate you if your personal possessions (such as a bike, laptop or television) are stolen or damaged due to a covered peril.
• Helps protect you against liability claims from a guest injured while in your rental.
• Helps cover your personal property, even if your belongings aren’t in your rented space (like your clothes in a storage unit or laptop left in your car).
• May show responsibility to a potential landlord, much like a credit score.

Why do landlords require renters insurance?

Renters insurance can also be beneficial for a landlord. A renters policy might:

• Help avoid a legal disagreement between you and your landlord if your belongings are damaged or stolen while living in the rental unit.
• Helps cover your additional living expenses if your landlord needs you to temporarily relocate because your unit is uninhabitable due to a covered loss.
• Mitigate the risk of injuries or damage caused by your pet to others or others’ property, like a rental unit.
• Prove you are responsible and ready to rent their property. Like a tenant's credit score, proof of renters insurance might be an indicator of a potential tenant's ability to pay rent on time.

Can a landlord require renters insurance

Yes, many landlords require renters insurance. The law does not require tenants to purchase renters insurance, but your landlord may require it before leasing you a property.

In many cases, the landlord’s insurance only covers the building or furnished contents. Without renters insurance, the tenant may have to bear the financial burden of a loss to their personal property. The landlord may require renters insurance by including a clause in the lease that says: “Lessee is required to provide proof of renters insurance within 14 days of the lease start date.”

While landlords require renters insurance to help minimize their risks, renters insurance also benefits the tenant by protecting their property and minimizing their risk. It’s a method to help ensure respect for property by both parties, keeping the rental in tip top shape.

How much renters insurance do I need?

When calculating how much renters insurance you need, consider all the belongings you would like covered by renters insurance. This includes your expensive possessions (such as your electronics and valuables). Create a home inventory list and include how much it would cost to replace all belongings if they were destroyed.

Start a quote and feel free to contact an insurance agent to assist you as you are considering options. If you are on the fence about getting renters insurance and want to understand the benefits, they can help resolve any questions or hesitations you may have.