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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Written byJessica Martel
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Jessica is a freelance writer, professional researcher, and mother of two rambunctious little boys. She specializes in personal finance, women and money, and financial literacy. Jessica is fascinated by the psychology of money and what drives people to make important financial decisions. She holds a Masters of Science degree in Cognitive Research Psychology.
Jessica has been a contributor at Insurify since July 2023.
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Edited bySara Getman
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Sara Getman is an Associate Editor at Insurify and has been with the company since 2022. Prior to joining Insurify, Sara completed her undergraduate degree in English Literature at Simmons University in Boston. At Simmons, she was the Editor-in-Chief for Sidelines Magazine (a literary and art publication), and wrote creative non-fiction.
Outside of work, Sara is an avid reader, and loves rock climbing, yoga, and crocheting.
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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.
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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]
Personal property
This provides coverage for your personal belongings if they’re damaged from fire, smoke, lightning, windstorm, explosion, water, theft, or other disasters listed in your policy. Renters insurance doesn’t cover damages that result from a flood or earthquake.
Liability
Liability insurance protects you if someone sues you for bodily injury or property damage that you cause to other people. If a family member or pet causes damage to someone’s property, liability coverage will pay for the legal costs. It can also include no-fault medical protection, which covers your friend’s or visitor’s medical bills up to your policy limit if they sustain an injury in your home.
Additional living expenses (ALE)
Also known as loss of use, this covers your living expenses — such as hotel or rental and restaurant meals — if your home is destroyed and you can’t live there.
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.
Good to Know
If your landlord doesn’t require renters insurance, you don’t have to get it. But it’s still a good idea. Consider what would happen if there was a disaster and your rental was destroyed. Can you afford to replace all of your personal belongings? What if someone gets hurt in your rental and sues you?
For such a low price — about $20 per month — it’s worth the protection.
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.
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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:
Pros
Protects your personal belongings: Without renters insurance, you’re responsible for replacing your personal belongings if they’re destroyed or stolen.
Covers additional expenses: If your rental is damaged and you can’t live there, many renters policies will pay for your hotel stay or temporary rental costs.
It’s affordable: Compared to other forms of insurance, rental coverage is affordable.
Cons
Extra monthly cost: While it’s affordable compared to other forms of insurance, renters insurance is still an additional monthly payment.
Limited coverage: Renters insurance typically doesn’t cover flooding or earthquakes.
Every tenant needs their own policy: Unlike homeowners insurance, every tenant, such as roommates and partners, needs their own policy.
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.
Sources
- III. "Renters Insurance."
- Understanding Home and Renters Insurance. "Office of Financial Readiness."
- Texas.gov. "Renters insurance: What does it cover and how much does it cost?."
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Jessica Martel
Jessica is a freelance writer, professional researcher, and mother of two rambunctious little boys. She specializes in personal finance, women and money, and financial literacy. Jessica is fascinated by the psychology of money and what drives people to make important financial decisions. She holds a Masters of Science degree in Cognitive Research Psychology.
Jessica has been a contributor at Insurify since July 2023.
Sara Getman is an Associate Editor at Insurify and has been with the company since 2022. Prior to joining Insurify, Sara completed her undergraduate degree in English Literature at Simmons University in Boston. At Simmons, she was the Editor-in-Chief for Sidelines Magazine (a literary and art publication), and wrote creative non-fiction.
Outside of work, Sara is an avid reader, and loves rock climbing, yoga, and crocheting.