A man is frustrated as he assesses a renters insurance claim on his computer.

Can Landlords Require Renters Insurance?

Renters insurance protects your tenants’ belongings if they get damaged in specific events, such as a fire or flood. In New York City, landlords cannot legally require that their tenants have renters’ insurance, however it is recommended that you speak with all your tenants about obtaining this insurance as it can protect both them and you.

What Does Renters Insurance Cover?

While the coverage provided by different renters’ insurance policies may vary, here is a list of what is typically covered:

1. Liability In The Event Of An Injury

If a guest is visiting your property and gets injured, your tenant is liable for the damages rather than you. However, renters insurance will typically cover the costs of any injuries that occur while a guest is on your property. This will take the stress of the incident off of you, your tenant, and even the guest.

2. Damage From A Natural Disaster

In the event of a natural disaster, renters’ insurance will protect all of the tenant’s belongings. This includes their electronic devices, furniture, appliances, jewelry, vehicles, and more. If any of these belongings are damaged or destroyed by the natural disaster, they will be covered by insurance.

3. Theft

Renters’ insurance will also protect all of the tenant’s belongings if they are stolen or damaged as a result of theft.

4. Property Damage Caused By Negligence

This will vary depending on the coverage the tenant chooses to get, but many policies will include protection to their belongings if they are damaged due to negligence.

How Does Renters’ Insurance Benefit The Landlord?

Renters insurance is clearly a wise investment for renters to make. But it’s also incredibly beneficial for landlords too. Here’s why:

1. It Can Help Protect You From Lawsuits

One of the biggest, and arguably the most important reasons, is that renters’ insurance protects you from lawsuits. If a natural disaster occurs and a tenant’s belongings are damaged or destroyed on your property, you can be held liable for covering the costs of repairing or replacing

their belongings. You may also be held accountable if, for example, your tenant gets injured while on your property, even if it was due to their own actions. In these types of incidents, it is unlikely that your liability insurance will protect you, which is why renters’ insurance can become crucial.

2. It Can Save You From Paying For Property Damage

If there is damage to the property and the tenant has no way of covering the costs of these damages, they will likely turn to you to cover the costs. There is no way of predicting how tenants will behave in the event of a disaster, therefore it is best to urge your tenants to get renters’ insurance as an extra measure to protect yourself and save yourself from avoidable expenditures.

3. It Will Help Keep Your Insurance Premiums Down

If your tenants do not have renters’ insurance, you are more likely to experience a lawsuit or damage claim by your tenants. If you are given a claim, it can lead to an increase in your insurance premiums as the insurance company will view you as more of a risk. Infact, if you get too many claims or lawsuits, the insurance company can choose to cancel your policy entirely.

4. It Can Help Increase The Number Of Applicants

If your tenants have renters’ insurance, in exchange, you are then able to be more lenient on your rules and policies. For example, you will be able to accept pets on your property as renters' insurance may cover the costs of property damage resulting from having pets. This means that you will be able to attract more applicants.

How Can You Convince Your Tenants To Get Renters’ Insurance?

It can be difficult to convince your tenants to get renter’ insurance as they may not feel they have enough of their own belongings on the property to justify the costs of insurance. In the end, it is your property, and they may not feel responsible for paying to protect it.

However, one reason you may want to stress onto your tenants to get renters’ insurance is the liability coverage. For example, if their guest gets injured while on the property or damage is caused by their pet, without renters’ insurance, they will find themselves having to cover the costs of these damages themselves. However, with renters’ insurance, they can rest assured that they will be protected in these events.

When you are speaking to your tenants about getting renters’ insurance, be sure to do the following:

1. Focus On The Benefits Of The Insurance

It can help to have the benefits clearly laid out for your tenants to see, such as putting them in bullet points or making a flier. It should be made simple and clear so you do not find yourself rambling and the tenant understands what is in it for them. Having your tenants understand the value of the insurance is the most crucial step in having them agree to get the insurance.

2. Make It Convenient For Your Tenants

Unfortunately, renters’ insurance can be difficult to get. It can be helpful to do this step for them, or find a company that allows you to easily offer renters insurance to your tenants. The easier the process is for your tenants, the more likely they will agree to it.

3. Emphasis How Affordable Renters’ Insurance Is

When hearing the word insurance, it is easy to jump to the conclusion that it will be another hefty monthly cost added to their list. However, what they may not know is that renters’ insurance is very affordable and will likely not be much of a burden on your tenants financially. Be sure to emphasize this from the beginning as cost can often be what makes or breaks their decision.

Protect Your Business — Turn To Outerbridge Law

As a landlord, you understand that it’s important to protect your business and property. That’s why you want your tenants to take out renters insurance policies. However, even when they take out renters insurance, there’s still the potential that things can go wrong. In that case, you need protection from a resource you can trust: Outerbridge Law, P.C.

With years of experience representing both landlords and tenants, Outerbridge Law understands the legal nuances and protections that can preserve your business and keep you profitable. If you think you have a case, contact Outerbridge Law today to schedule an initial consultation.