Skip to Content

Can renter’s insurance be required?

Can renter’s insurance be required?

If you have a certain breed of dog, you may want to obtain a personal liability policy in addition to your renters’ insurance plan. Renters’ insurance is not required by law, but it is legal for your landlord or management company to require you and other tenants in your apartment building or house to have renters’ insurance as a condition of your lease. And a tenant can be asked at any time to provide proof that he or she has purchased and maintains renters’ insurance. The big difference between the two policies is that renters’ insurance does not cover the cost of damage to the structure of a building.

The exemption from renters insurance for subsidised housing is unfortunate because in many cases the tenants of these units are the ones who can least afford the financial setback of personal liability, property loss or damage. Like homeowners’ insurance, renters’ insurance can cover the cost of replacing personal belongings (such as a computer, television, furniture or bicycle) if they are damaged, destroyed or stolen. Requiring a tenant to have renters’ insurance can protect them in case their property is damaged or stolen. However, there are a number of reasons why it is in a tenant’s interest to have renters’ insurance.

You should include language in the lease outlining the penalties for not complying with the tenant insurance requirement. Make sure your discussion comes from a place of service and emphasises the benefit to the tenant as the main message. Renters insurance covers damage to or loss of items within a flat or rental home, such as furniture, appliances and electronics. By investing in renters insurance, you won’t have to bear the cost of potential losses on your own.

Reduce your own liability If one of your guests is injured in your home and you don’t have renters insurance liability coverage to pay for their medical treatment, that person can seek compensation from their landlord. By partnering with Sure, an insurance technology company that provides innovative solutions to the needs of both renters and property managers, you can notify renters of their insurance obligation and help streamline the process of finding and obtaining coverage, directly from the RentSpree platform. There are a few ways in which a landlord can ensure that tenants have taken out the required tenant insurance.