Emily Dekker
Already own a few doors? Skip the basics and go straight to 2026 Tax Checklist or Scaling your portfolio
Many landlords require renters insurance in the lease. It protects the tenant's belongings and can add a layer of liability coverage that benefits both parties. For what goes in a lease, see What Is a Lease?; for legal obligations and habitability, see Landlord Legal Compliance.
Renters insurance typically covers the tenant's personal property (theft, fire, water damage) and may include liability if someone is injured in the unit. If the tenant causes damage (e.g. overflow), their policy may respond before or in addition to yours. Requiring it in the lease sets the expectation and can reduce disputes over who pays for what.
A common clause states that the tenant must obtain and maintain renters insurance (e.g. $100,000 liability, named landlord as interested party or additional insured if your state allows). You can require proof of coverage at move-in and at renewal. If they let it lapse, the lease may specify that they are in default until they provide proof again.
Renters insurance covers the tenant's belongings and their liability—not your building or your liability. Your landlord insurance covers the structure and your exposure; see Landlord Insurance: What You Need. Making the requirement clear in the lease and following up on proof keeps everyone protected.
Free tools, tax updates, and product news — no spam.
Stay compliant and avoid costly legal issues. Comprehensive guide to landlord-tenant laws; NAA notes compliance violations can cost landlords thousands in fines and fees.
A security deposit is money you hold for the lease term to cover unpaid rent or damage. Learn typical amounts, where to keep it, when to return it, and how to handle deductions—and stay within state rules.
Landlord insurance protects your rental and you—liability, property damage, and often loss of rent. Learn how it differs from homeowners insurance and what coverage every property owner should have.