A security deposit, first and last months’ rent and a credit check aren’t the only things a renter needs to get into an apartment or rental home. In some cases, your building or landlord may require you to carry renters insurances. If you’re a renter facing a renters insurance requirement, you may be wondering “can a landlord require renters insurance?” The answer to that question may depend on your state.

While having renters insurance required to move in may feel like yet another thing to add to your moving to-do list, it can provide valuable coverage. A landlord or management company oftentimes will require this coverage so that tenants share some financial responsibility if a large claim were to arise.

In general, renters insurance is usually an optional purchase by a tenant, though some landlords write it into leases as a requirement of tenancy. Whether you have a choice of coverage or not, it is coverage worth considering. If you are required to carry coverage, make sure you shop around for the best rates and consult an insurance agent to ensure you’re getting the proper coverage for your needs.

Navigating Renters Insurance Requirements

What is renters insurance?

Let’s start at the beginning. If your landlord is requiring renters insurance, it’s a good idea to know what that will entail. A typical renters insurance policy will cover two main areas:

  • Personal property: Replacing damaged or stolen property that belongs to the tenant.
  • Liability coverage: Property damage caused by the tenant’s negligence.

Think of all the things you own that you’ll be bringing into your apartment. The cost to replace those items if they were all damaged would be pretty darn high! That’s where renters insurance comes in - under the personal property coverage, there are 16 specific perils that are normally covered. They include fire, vandalism, theft, smoke, explosion, accidental overflow of water from plumbing, frozen pipes and burning hot water coming out of a hot water heating system. Flooding and earthquake damage normally aren’t covered and require a separate policy for coverage.

Liability coverage protects you from a lawsuit if someone is injured in your apartment due to your negligence. Dog bites are also often covered. No-fault medical payment coverage is also common. Liability limits range from $100,000 to $500,000, though if you have high-value assets to protect, you may want to consider an umbrella policy of $1 million or more in coverage.

In addition to covering your belongings and your liability, many policies will also cover living expenses if your apartment is destroyed, such as a hotel, meals, laundry and other things you need while the apartment is being repaired. Be sure to check with your insurance agent to see if your policy offers this coverage.

An insurance agent can help you determine how much coverage you need for your apartment. Call one of our insurance advisors today at (844) 824-2887 for help comparing renters insurance quotes and determining the coverage you need to protect yourself and your belongings.

Why do landlords require renters insurance?

It’s a common misconception that the apartment owner or property management company’s insurance will cover any losses by renters. While the owner’s insurance should cover liability outside of a renter’s apartment as well as the costs to repair an apartment that’s damaged by an accidental kitchen fire, for example, the renter is responsible for their personal belongings and assets inside the apartment.

The main reason why a landlord or property owner may require a renter to have renters insurance is money. By filing a claim against a tenant’s policy instead of the apartment owner’s policy, the owner saves on paying a deductible. For example, if a tenant causes a kitchen fire, a landlord may have to use the apartment complex’s insurance to pay for repairs. But if the tenant has renters insurance, the kitchen fire damage can be paid for by the tenant, since the tenant is at fault for the damage.

While the personal property insurance of a renter may not be a landlord’s concern, landlords may require renters to cover some of the liability if the renter caused an accident. Even if the landlord’s insurance pays for repair costs from a fire, the renter who caused the fire by accident can use their renters insurance to cover the landlord’s insurance deductible.

The renter’s liability coverage can also be used if a guest is injured in the fire, instead of filing a claim on the landlord’s policy. Personal property coverage can help tenants replace things lost in a fire.

Landlords must also have insurance, and renters should ask about the type of insurance a landlord has before they buy renters insurance. For example, ask if your landlord has enough liability insurance in case someone is injured on the property and needs medical help.

Can a landlord require renters insurance?

Housing laws are set by states. Some states have limits on how much renters insurance coverage can be required by a landlord. Oklahoma doesn’t allow tenants to be required to buy renters insurance, partly because it would duplicate coverage that landlords have.

Many states follow a precedent set in Oklahoma called the Sutton Rule. It holds that a tenant is a co-insured of the landlord’s policy. The tenant effectively pays for the policy through rent. The Sutton Rule prevents the apartment building’s insurance company from suing the tenant for negligence. In other words, insurers can’t sue their own customers. Requiring a tenant to have renters insurance so that a landlord can keep their premiums low and avoid paying high deductibles also isn’t allowed in Oklahoma.

Some states allow renters insurance to be required of renters, but only up to a set amount of coverage. For example, Oregon caps the requirement of liability coverage at $100,000 for renters, and landlords must carry a comparable policy. Oregon tenants who earn less than 50 percent of the median area income, and people living in publicly subsidized housing, can’t be required to buy renters insurance.

The Bottom Line

Whether you’re required to purchase coverage by your landlord or you’re considering coverage for your new place, renters insurance can help you get on with life after a disaster. It’s relatively cheap — $190 on average for an annual policy in 2014 in the United States, or $15.83 per month, according to the Insurance Information Institute – and can provide valuable coverage should the unexpected happen. Whether or not you have to have it will depend on where you choose to live, but it’s a wise consideration no matter where you’re renting.


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