Can My Landlord Make Me Buy Renters Insurance?

A growing trend in home and apartment leasing is the requirement for tenants to purchase renters insurance and personal liability coverage. You may have received a notice from your landlord notifying you that you don't have renters insurance coverage. If you look at your lease, then you may find out that there is a clause within it that states that all tenants must carry renters insurance and some level of personal liability insurance.

Is it legal for my landlord to require me to buy renters insurance?

It is estimated that as many as 75% of tenants do not carry renters insurance. There are many laws that landlords must follow. Landlords must follow the Fair Housing Act, ensure that your residence is within code and is safe and habitable, make major repairs and follow individual state laws regarding leases and rent payments.

Pretty much any other clause in a lease is legal as long as the landlord follows state and federal housing laws. This includes the requirement to buy renters insurance.[1] This requirement is considered to be no different than the requirement to keep the home clean, pay utilities, etc. It would likely not be considered an unfair covenant by district courts in most states. If your landlord requires it in your lease and you continue to not buy coverage, then he can actually go to court to evict you.

Landlords also typically require you to buy at least $300,000 of personal liability coverage which insures you against any excess liability you may cause to other people or property. This in essentially a mini-umbrella policy that protects you for any damages or injuries that may be caused by you or anyone in your family. It also includes injuries or damage caused by any pets.

Why would a landlord want to include renters insurance in the lease?

If something were to happen which damaged or destroyed your apartment or if you caused damage or injury to another tenant or his property, then a landlord would want to ensure that he isn't held liable. If you were uninsured, then it's possible that he may have to defend himself in court for something that occurred on his property. He may have to prove that he wasn't at fault as the owner of the property. Your insurance coverage acts as a buffer and, most importantly, it also protects you!

How expensive is renters and personal liability insurance?

It really is no big deal to get renters insurance as it's very inexpensive and really isn't worth trying to fight your landlord over. In most cases, coverage starts at about 10-$15 per month for the baseline $30,000 renters coverage and $300,000 personal liability and goes up to a few hundred dollars yearly if you are a higher risk (own a dog, pool, trampoline, etc.). It's best to compare renters insurance rates and try to find the lowest cost. Coverage costs can vary as much as a couple hundred dollars per year for the same coverage. Shop around and be sure to be up front when your agent asks you questions about any pets, etc. Be sure to give a copy of your declarations page as proof of coverage to your landlord or you can give your agent permission to contact them for you.

[1] Rentlaw.com - Renters Insurance

This should not be considered financial advice which can only be given by a qualified financial or insurance professional. We suggest you consult with a licensed financial planner and/or insurance professional who is most qualified to consult with you regarding policy decisions. Many factors are involved in your policy premium and coverage due to hurricane and storm damage, some of which may not be mentioned in this article. We are an affiliate of the Bankrate Insurance Network.

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