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Should Property Owners Require Tenants to have Renters Insurance?

Should property managers require renters insuranceThis is a good question! Requiring tenants to purchase renters insurance is a growing trend in the property management industry. At Rooftop Real Estate we believe there are several good reasons to require your tenants in Idaho to have renters insurance. Plus, requiring a policy will help protect you, the property owner, as well as the tenant if the rental property is damaged.

Many leases remind tenants that their personal belongings are not covered in case of fire, flood or theft and suggest purchasing renters insurance, but should property owners require they do so?

There are several things for property owners to consider when it comes to requiring their tenants to have renters insurance. While it may deter some applicants, most responsible renters will already have an insurance policy on their belongings. The cost of the policy to the renter is minimal and it provides decent coverage for their personal belongings.

More and more property owners in Idaho are requiring renters insurance, and one reason the trend is growing is that tenants are less likely to sue and seek damages if the cause of the damage was not their fault. If there is a fire and it is the result of damaged or faulty wiring or a bad furnace, a tenant can and will seek reimbursement from the property owner to replace their belongings. If they tenant has renters insurance, their policy will cover the loss of their items, reducing the possibility that they would sue the property owner for damages.

Some rental insurance policies also provide for the removal of damaged property, eliminating the risk that the tenant will move out after a fire or flood Property owners require renter's insuranceand leave behind damaged belongings. This will speed up the cleanup of your property, reducing the amount of time it is vacant and the total cost of cleanup.

You may also want to consider requiring the tenant hold liability coverage with their renters insurance, especially if you allow pets. This would require the renters’ insurance policy to pay a property owner for damage resulting in neglect from the tenant. It would also cover personal injury claims stemming from things like dog bites.

Requiring renters insurance can be a regional occurrence, so check around the area where your property is located to see if others require tenants to hold renters insurance. Consider the pros and cons and determine what is best for your property. At Rooftop Real Estate we strongly encourage tenants to purchase renter’s insurance and have partnered with a local insurance agent who offers tenants a free Visa Giftcard if they just talk to him about a renter’s policy. We are always looking for ways to improve the renting experience for our tenants, and protect the property owner’s investment.

To learn more about Rooftop Real Estate you can visit our tenant site at or continue to follow our Property Management Idaho blog.