Can Landlords Require Renters Insurance?
No law requires renters insurance. But you could face eviction if your landlord requires it and you fail to acquire it.
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As a renter, no U.S. states legally require you to purchase renters insurance. But your landlord can typically require it in the tenant agreement.
Many renters believe their landlord’s insurance will cover their personal belongings if damaged in a fire or stolen, but this isn’t the case. Without renters insurance, you’re on the hook for the cost of replacing your stuff. Similarly, if someone injures themselves in your unit, you could be liable for their medical bills.
Here’s what you need to know about renters insurance — what it is, how it’s different from landlord insurance, and how much it costs.
What is renters insurance?
Renters insurance, also called tenant insurance, is a type of property insurance you can purchase to protect your belongings. While there’s no legal requirement, your landlord might make it mandatory as part of your lease agreement. There may be some variation between states, so check your local laws.
Renters insurance typically includes three types of protection:1
Why a landlord may require renters insurance
It’s common for landlords to require their tenants to have renters insurance. Landlords should document in the tenant agreement if they require insurance and the coverage amounts. A big reason landlords ask renters to have insurance is to minimize their risk.2
For instance: Let’s say you have a party at your rental, and someone gets hurt. Your renters insurance can help cover a liability claim. Without renters insurance, the injured person might pursue legal action against the landlord for damages. While landlord insurance provides liability coverage, renters insurance adds another layer of protection.
Landlords might also use renters insurance to screen tenants. A tenant who’s willing to get renters insurance might come across as more responsible and more financially stable.
Landlord insurance vs. renters insurance
Landlord insurance covers the structure of the rental home from common perils like fire, storms, hail, or vandalism. It also includes liability coverage for medical or legal bills if someone is injured on the property. In some cases, a landlord policy covers loss of rental income. Landlord insurance is designed to protect the homeowner.
Landlord insurance doesn’t cover your personal belongings or provide you with liability coverage. If your stuff is damaged or stolen and you don’t have renters insurance, you’ll need to pay to replace your personal items. To protect your belongings and cover yourself if someone is hurt in your rental unit, you’ll need to purchase a renters insurance policy.
To highlight the difference, imagine if there was a fire at your rental. Your landlord’s insurance would cover damages to the structure of your building but not your possessions. Your insurance covers the contents inside your rental — your furniture, laptop, and clothes. If you need to move out while your home undergoes repairs, your insurance may also help cover your hotel costs and other living expenses.
Average cost of renters insurance
The average national cost for a renters insurance policy with $30,000 in personal property coverage and $100,000 in liability coverage is $20 per month, according to Insurify data. For $100,000 in personal property and $750,000 in liability coverage, the average cost is $43 per month.
The cost of renters insurance varies based on a variety of factors, including your location, deductible, policy limit, and claims history.
You can save money on renters insurance by comparing multiple quotes, looking for discounts such as bundling, and selecting a higher deductible.
Pros and cons of renters insurance
When making any financial decision, it’s important to review the benefits and challenges. Here are some of the pros and cons associated with renters insurance:
What could a landlord do if you don’t carry renters insurance?
If your landlord requires you to carry renters insurance as part of your rental agreement and you don’t follow through, eviction is possible. Typically, your landlord will provide you with a notice giving you time to fix the problem. If you fix the problem within the allotted time, they’ll cancel the eviction.
Renters insurance FAQs
If you still have questions about renters insurance and are wondering if it’s right for you, check out answers to some of the questions below.
Why do landlords want you to have renters insurance?
Landlords may require you to have renters insurance to help minimize their risk. For instance, if someone hurts themselves in your rental, your insurance can help cover a liability claim. Without renters insurance, the injured person might take legal action against the landlord for damages.
How much renters insurance do most apartments require?
There’s no one “right” amount of insurance. The amount of insurance you need depends on the value of your personal belongings. To determine how much insurance you need, create a home inventory list with all your possessions and their estimated value.
Does Texas law require renters insurance?
No. Texas law doesn’t require renters insurance. But your landlord can require you to have a renters policy.3
Can landlords charge for renters insurance as part of your rent?
Your landlord can’t charge for renters insurance as part of rent unless your lease agreement specifically says so.
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