Can I require tenants to purchase renters insurance?
You should check your state’s landlord-tenant statutes to determine whether you can legally require your tenants to purchase renters insurance. In many states, unless expressly prohibited by state statute, a landlord can require renters insurance as a rental term and condition of the landlord’s lease agreement. A tenant can be required to purchase renters insurance and provide proof of insurance coverage prior to lease signing and move-in. A landlord may also require a tenant to purchase a specified dollar amount of policy coverage. A rental applicant should be made aware of the landlord’s rental policies for renters insurance before the applicant executes the lease contract, preferably when the applicant completes an application.
Lease agreements should clearly state that the owner’s insurance policy does not insure a tenant’s personal property, protect the tenant against liability claims, or cover damages to the landlord’s property caused by the tenant’s negligence. Detailed information regarding insurance issues should be included in the lease agreement.