Why I Now Require Renters Insurance for my MTR

I’ll be honest—I didn’t always require Renters Insurance. It seemed like one of those “nice-to-have” things rather than a must-have. But after doing some research and consulting with an attorney, I realized that requiring it is a no-brainer.

What I Learned About Renters Insurance

A lot of landlords assume that their own insurance policy covers everything, but here’s the reality: Landlord Insurance does NOT cover a tenant’s personal belongings. If a tenant’s laptop, furniture, or clothes get damaged in a fire or stolen in a break-in, they’re out of luck unless they have Renters Insurance.

Sure, your Landlord Insurance covers things like lost rent and temporary housing for tenants under certain situations, but making a claim can be risky. A single claim could send your premiums through the roof—or worse, get your policy dropped altogether.

Why Renters Insurance is a Win-Win

The good news? Renters Insurance is super affordable—we’re talking as little as $5–$10 a month. And it doesn’t just protect tenants' belongings; it also provides:

✅ Personal liability coverage – If a guest trips and breaks their ankle in the rental, Renters Insurance helps cover the costs. 

✅ Temporary housing – If your MTR becomes uninhabitable due to a covered event, it helps pay for a hotel or other accommodations. 

✅ Food loss coverage – Some policies even cover food spoilage from a power outage or a busted fridge!

One of the easiest ways for tenants to get coverage is to reach out to their car insurance company—many offer bundle discounts when combining auto and renters insurance. Another option is using providers like Lemonade, or doing a quick online search for policies. You don’t need to recommend one company, but you can suggest that tenants start there to find the best fit for their needs.

The bottom line is Renters Insurance is a small investment that can save both you, the landlord, and tenants from major headaches down the road.

Make It a Lease Requirement

To keep things simple and protect everyone involved, I now include Renters Insurance as a lease requirement. If a tenant doesn’t maintain their policy, it’s considered a lease violation.

This keeps expectations clear and ensures that everyone is covered.

Here are the key things to include and do:

• 📄 Include a clause in your Lease Agreement: Clearly state that Renters Insurance is required and explain what it’s intended to cover (e.g., tenant’s personal belongings, guest injury liability, temporary housing, loss of food, etc.). Also clarify that these are not the landlord’s responsibility.

• 📌 Make it part of your move-in requirements: Require tenants to submit proof of active Renters Insurance before they receive access to the property.

• 🧾 Require to be listed as an “Interested Party” on the policy: This way, you’ll get notified if the tenant cancels or makes changes to their coverage during the lease term.

• ☎️ Call the insurance company to verify coverage: Make sure you verify the policy directly with the provider.

Renters Insurance is just one of many important protections to include in your lease. From utility caps to ring camera disclosure (and disclaimer 😎), there are other key clauses that help prevent misunderstandings and potential legal headaches.

📥 Want to see what else you should include in your lease?

Download my free guide: 17 Must-Have Lease Clauses for furnished rentals. It includes a list of 17 important lease terms and the why behind each one—so you can make informed decisions about what to include in your own lease.