Rental managers and owners are increasingly requiring that renters carry their own liability insurance.
Approximately 2/3 of the people living in rental properties do not have renters insurance. There is a general misconception among tenants that the landlord’s policy will cover them in case of lost or damaged property. The truth is, the landlord is not responsible for covering any of the tenant’s personal property, unless the loss or damage is due to the negligence of the landlord.
So, how does requiring renter’s insurance help a landlord? It is a way to minimize their own liability and insurance costs. It also protects the tenant in a case of loss by replacing personal possessions and covering temporary relocation expenses.
The average cost of renter’s insurance is between $15 and $20 and generally carries a $250 deductible. Most major carriers offer renter’s policies and also give a discount if the tenant has an auto policy with the same carrier. A landlord can assist in keeping the cost of renter’s insurance down by offering security systems, hard wired smoke detectors and exterior doors with dead bolt locks.
In some situations, a landlord will not be able to require tenants to obtain renter’s insurance such as in the case of rent regulated properties or government subsidized programs. It’s a good idea to check with a local landlord/tenant attorney before making any changes to your existing lease and requiring renter’s insurance.
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