Renter’s Insurance

There are times when owners and managing agents wish they could require every tenant to have renter’s insurance – especially when a resident is at fault for a fire or water damages.  It costs the property to have these repairs completed, and if management uses its own property insurance the premiums will increase.

In a recent article in Multi-Housing News Online, owners of properties were made aware of the importance of residents having renter’s insurance. A survey conducted by the National Multi Housing Council (NMHC) concluded that 66% of owners who replied to the survey required renter’s insurance in 2010.  Many require coverage of $100,000, with limits ranging from $25,000 to a staggering $2M required by one owner.

However, HUD Regulations prohibit an owner/agent from requiring that tenants have renter’s insurance.  In fact, any deposits other than security deposits and not permitted. While owner/agents can certainly encourage renter’s insurance, we cannot make having it a condition of tenancy.