Can a landlord require renters insurance?

Why do landlords require renters insurance?

Landlords require that tenants have renters insurance for two reasons: to transfer liability for tenant-caused injuries and property damage away from themselves, and to provide coverage for any damage the tenant does to the rental unit.

The landlord's own insurance policy covers the building structure and the landlord's own liability. When a tenant carries renters insurance, tenant-related claims are shifted to that policy, reducing the landlord's exposure and avoiding disputes over responsibility.

Renters insurance liability coverage also pays for damage the tenant causes to the landlord's property, so the landlord doesn't need to file a claim against their own policy. Renters insurance also covers the tenant's property, which is not covered by the landlord's policy. Carrying renters insurance gives the tenant a clear path to recovery.

How much does renters insurance cost?

Renters insurance costs an average of $24 a month, or $288 a year, for a policy with $40,000 in personal property coverage and $100,000 in liability with a $1,000 deductible, according to Insurance.com data. Rates vary by company, from $16 a month at State Farm to $44 a month at Travelers, and by coverage level and location.

$40,000 personal property, $100,000 liability, $1,000 deductible	Monthly cost
National average, all carriers	$24
Cheapest major carrier: State Farm	$16
Most expensive major carrier: Travelers	$44
Cheapest state: Wyoming	$12
Most expensive state: Louisiana	$48

To find out how much renters insurance you need and to see how much you can expect to pay, use Insurance.com's average renters insurance rate tool, which shows rates by ZIP codes for 75 coverage levels.

FAQ: Landlord-required renters insurance

Can landlord force you to get renters insurance?

Yes, a landlord can require you to buy renters insurance, but not in the middle of the lease term. Renters insurance can be added as a requirement when the lease renews. Tenants who refuse may not be offered a lease renewal.

How much renters insurance does a landlord require?

Landlords commonly require a minimum of $100,000 in liability insurance. While landlords may recommend a personal property limit, renters should choose this coverage based on the value of their belongings.