Renters insurance offers financial protection for renters, covering their belongings, liability, and additional living expenses in case of unexpected events. While it is a protective measure that many renters choose to have, a common question arises when considering it: is renters insurance required by law or is it a requirement set by the landlord? Understanding the difference between a legal obligation and lease requirement can help renters make an informed decision and know what to expect.
Whether renters insurance is required by law or by your landlord affects your responsibilities as a renter. We’ll help you navigate these situations by teaching you everything you need to know about renters insurance requirements:
- Is renters insurance required by law?
- When can your landlord require renters insurance?
- What does renters insurance usually cover?
- Is renters insurance worth it?
Is Renters Insurance Required by Law?
Before you move, it’s important to know that renters insurance is not required by law in any state. There are no federal or state laws that stipulate renters insurance must be a requirement.
However, certain states, including Oklahoma, Virginia, and Oregon, have regulations regarding renters insurance, mostly about when or how a landlord can require it. There are also special circumstances that affect a landlord’s ability to require renters insurance like subsidized housing or specific programs.
Clarifying legal requirements vs. lease obligations
While renters insurance is not a legal mandate, meaning it is not required by federal or state law, in most states, landlords can still require it as a condition of tenancy. Simply put, your landlord can require renters insurance as part of your lease agreement.
Your landlord can stipulate the amount of liability coverage they want you to have in most places as well as consequences for not getting it or failing to maintain it. If you don’t follow this requirement, it could end in a denied lease or eviction for non-compliance.
When Your Landlord Can Require Renters Insurance
Landlords are allowed to make renters insurance a requirement in leases in most states. This doesn’t mean they need to provide it for you; you are the one who is responsible for getting renters insurance.
Your landlord may stipulate conditions, such as a certain amount for liability coverage or needing to be listed as an additional interest, in addition to the requirement of renters insurance.
The reason landlords want you to have renters insurance is that it will protect your personal belongings and provide liability coverage. This lowers your landlord’s responsibility and risk as you won’t be financially responsible in the event of unexpected incidents.
State-by-state variations and exceptions
As laws vary from state to state, it’s natural to ask: do any states require renters insurance? Luckily, the answer is an easy no — there are no states that have any requirements. There are some exceptions when it comes to what a landlord can require and special conditions, such as subsidized housing.
Cities with rent-controlled, rent-stabilized, or subsidized housing can impose additional regulations on landlords regarding renters insurance. A common one is that landlords cannot have mandatory renters insurance if the renter is part of one of those specialized programs or in a rent-controlled apartment. This is to prevent further financial burden on the renter.
Some places do allow landlords to require renters insurance even if the renter is in a program or has a rent-controlled apartment. However, the landlord must require it from their non-Section 8 or non-rent-controlled renters as well. Renters insurance and subsidized housing can get complicated so it’s best to do your research or ask a professional before renting.
What Renters Insurance Typically Covers
A renters insurance policy usually covers three main types of coverage:
- Personal property: All your belongings are protected up to a certain amount so if anything is stolen or damaged, it will be covered.
- Liability: If a guest in your apartment gets hurt, your renters insurance will cover their medical expenses. If your pet accidentally hurts someone, that would be covered if your policy includes pet liability.
- Additional living expenses: If your apartment is damaged to the point of being uninhabitable, you’ll have to find temporary housing. Most renters insurance policies will pay for this.
Cost vs. Value: Is Renters Insurance Worth It?
While renters insurance is not legally required, it is often contractually required. Even if it isn’t, it’s still a good idea because of the protection it provides.
For the amount of coverage that you get, you may expect renters insurance to be expensive. Thankfully, it is quite affordable with the average cost being $148 per year or $12 per month. Renters insurance is definitely worth it since you’ll be prepared for whatever happens.
Make sure you are following any lease requirements for renters insurance (such as specific amounts) and that you pick the right coverage for you. If you have any more questions, check out the Renterverse blog as we’ve answered many burning inquiries about renters insurance.
FAQs
What doesn’t renters insurance cover?
While renters insurance covers a lot, there are a couple of exclusions you need to be aware of:
- Flood and earthquake damage (natural disasters)
- Normal wear and tear
- Roommate’s belongings (unless they’re a joint policyholder)
- High-value items without endorsements
How can I get insurance for high-value items?
If you own expensive items that exceed the policy’s limit, it may be worth exploring additional coverage options. Without additional insurance, these high-value items may not be fully covered by your renters insurance. Ask your insurance provider about additional coverage to find out what options would suit your situation best.
