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A frugal renter looking to avoid additional expenses may not want to take on renter’s insurance, but it’s definitely something you will want them to carry. 

Needless to say, this pandemic has brought on plenty of uncertainty to rental property owners, so it’s extra important that you vet tenants prudently and form a relationship that benefits you both. Renter’s insurance is a safeguard for you and your tenant and it’s no cost to you.  And generally, coverage plans are very inexpensive.

So, What is It?

Renter’s insurance is a policy that the renter is responsible for, giving protection for their personal property, damage to your property, and liability from accidental injuries to any visitors and damage of third-party property. However, this does not include harm caused by structural issues – those are for you, the landlord, to rectify.

How Renter’s Insurance Protects Residents

There are numerous types of coverage for renter’s insurance to protect occupants including:

  • Personal property – If your tenant’s property is stolen, their insurance will reimburse the expense to replace items. Additionally, insurance will protect personal property under a multitude of circumstances, including: fire damage, smoke, explosion, windstorm or hail, vandalism and/or overflow of water. Standard items include: furniture, clothing, small appliances, computers and other electronics.

  • Additional Living Expenses– If your tenants cannot live at the property for an amount of time because of a natural disaster such as a flood, storm, or fire, then the insurance would cover a hotel.

  • Liability – This part of the renter’s insurance is used when they inadvertently cause damage to your property. By itself, a security deposit might not be enough to fix the damage if your tenant causes massive loss. So your renter is insured, the insurance company will cover damages as long as they were accidental. Additionally, liability covers any bodily harm sustained at the property, whether it’s tripping over a dog or getting bit by a dog. 

  • Medical expenses – Renters should have their own medical insurance, but liability usually covers medical expenses related to any injuries suffered.

  • Third-party damage – If a stray baseball crashes through the window, you’re still covered under third-party damage. DIY projects gone awry or backyard blunders that might cause accidental damage will be covered by their insurance. 

Insurance Protects Landlords Although you have other things to worry about besides your tenant’s belongings, they can turn into a dilemma for you if your renter decides to sue you due to their inability to pay for something that was stolen or damaged. Whether any blame falls on you or not, dealing with lawsuits is costly and burdensome.

An added protection of insurance is assurance your tenant can continue paying their rent on time. If they’re unable to pay rent due to their losses, which will fall on the landlord. If loss of use occurs, and they have to temporarily vacate, if insurance is paying for the time being, there’s a better chance your renter returns able to pick back up with rental payments where they left prior to the damage.


Renter’s insurance will safeguard renters and landlord. Policies are generally very affordable, which won’t stress your tenant’s wallet. If there is property damage or a neighbor gets hurt while visiting your occupant, the renter’s renter’s insurance can handle the cost and liability instead of you. So if you’re wondering, yes, you should absolutely require renter’s insurance for your tenants.

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