According to a survey by Allstate insurance, 60% of tenants nationwide do not have renter’s insurance.   The cost of renter insurance is very cheap, usually $15 to $20 per month, and within the price range for most tenants who are not absolutely destitute.  Some landlords are requiring their tenants to carry renter’s insurance because it protects the landlords cash flow.  Should a tenant sustain a devastating loss without renter’s insurance, they might not be able to pay the rent.  And then the landlord must begin the long and costly job of the eviction process.

Tenant’s Liability

According the OC Register, some tenants believe that they don’t need renter’s insurance because they are covered by the building owner’s policy.  While the building owner’s policy covers the building, it doesn’t cover theft or kitchen fires.  Tenants are arguably liable for “any problem they create” such as a kitchen fire.  Even if your landlord doesn’t require renters insurance, it’s valuable for tenants the protect their property and the risk of a lawsuit with renter’s insurance.   Renter’s insurance should defend you should someone decide to sue you for slipping and falling inside your apartment or on your balcony.  Another little known detail is that renter’s insurance might be able to provide assistance should you be involved in a civil suit, similar to the protection provided by a home owner’s policy.   Talk to your insurance broker about the exact details of each policy.  

Landlords Benefits of Renter’s Insurance

Landlords who require renter’s insurance enjoy the benefits of having tenants who are protected, should a tenant-caused accident occur in the apartment, and it also provides a level of tenant screening, by screening out some tenants who are so strapped that they can’t afford to pay an additional  $15-20 per month.  If your tenants cannot afford this small amount, chances are they might not be able to pay the rent very soon.

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