Can An Apartment Complex Require You To Have Renters Insurance?

1. 

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   David Osgood

   Agent, Rural Mutual Insurance Co., Union Grove, WI

   Yes, an apartment complex could write into it's rental or lease agreement that every tenant be required to secure renters insurance to be eligable to rent a premise from them. Having renters insurance provides personal property protection, personal liability protection for the insured, and some loss of use coverage up to the policy levels and possibly less the policy deductible.

   Answered on October 26, 2013

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2. 

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   Terry A. McCarthy, CLU, ChFC

   President, Insurance Associates Agency Inc., West Chester, OH

   In our "perfect outcome" world the owner of the rental property has every right to avoid assuming responsibility for the negligence of its tenants. Too often plaintiff's lawyers seek deeper pockets for injuries real and alleged and when the tenant is found to be uncollectible the owner often gets stuck with the bill when a judgment needs to be paid. The property owner (landlord) is acting in a reasonable and prudent manner when they insist upon a tenant taking responsibility for their own liability and insurance needs by requiring evidence of insurance. If they didn't, it isn't unreasonable to presume that plaintiff counsel would argue that it is negligent on the party of the property owner not to expect or insist that a tenant have their own property and liability insurance as a condition of tenancy. The larger and more sophisticated the property owner the more likely they will have adopted risk management principles that require their tenants to have property and liability insurance as a condition of tenancy. It will become common practice in the years to come for almost every landlord to insist on evidence of insurance as a condition of tenancy. Financial prudence dictates the adoption of such a policy and I am aware of no law that prohibits a landlord from requiring proof of insurance coverage. And I go back to the original statement and assert that no landlord is wise to assume the responsibility for insuring the risk of the tenant and this is a risk that is clearly the responsibility of the tenant regardless of where they call home.

   Answered on August 24, 2015

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