Applying to rent an apartment or house can be stressful, there’s no doubt about it. Landlords can make tenants jump through a number of hoops in order to qualify for a rental, and one of those hoops can be showing proof of rental insurance.
But can a landlord require renter’s insurance, legally? And why do landlords require renter’s insurance in some instances, but not in others? We’ll dive into these questions below so that you can be prepared for your next rental.
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The short answer is yes, landlords can require renter’s insurance in order to approve you for the rental in almost every state. While this might seem unfair, there are a few reasons why renter’s insurance might be required.
Landlord’s typically have landlord insurance, but this is separate from renter’s insurance. It protects the landlord should there be structural damage to the property, liability issues, or lost rental income. However, landlord’s insurance doesn’t protect the renters: that’s where renter’s insurance comes into play.
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Although landlords often have landlord’s insurance, they might require tenants to have renter’s insurance. This gives them (and yourself) an added layer of protection should something happen.
The main reason is to protect the landlord financially. Renter’s insurance can shield landlords from having to pay for alternate accommodations for tenants in case of extensive repairs/renovations, from paying for damages to belongings, and reduce their liability in case a tenant is involved in a lawsuit.
Requiring tenants to have renter’s insurance can also help landlords find responsible tenants that will help protect the home/apartment. Landlords may require renter’s insurance to also alert them to financial red flags in tenants: because renter’s insurance is quite affordable, compared to other forms of insurance, tenants unable to afford it may not be able to afford rent either.
If your landlord has required you to show proof of renter’s insurance, it’s not necessarily a bad thing. Renter’s insurance will protect you and your landlord while giving you both peace of mind. With renter’s insurance being incredibly affordable, especially given the protection it offers should the worst happen, it makes sense for every tenant to purchase.
Jessica Fox Jessica Fox has been a freelance writer for five years, with a specialty in health, wellness, and insurance. During this time, she’s written for some of the biggest B2B and B2C brands from around the world. Jessica is also the mother of two young daughters and loves coffee, writing, and working out.
