Tenant rental agreement with person holding a pen preparing to sign. Purple keychain with two keys. Farmers Insurance logo on keychain.

Can Apartments Force Tenants To Have Renters Insurance?

This is a question many tenants and landlords are asking. Renter’s insurance can provide financial protection and liability coverage for tenants, and landlords may require it to protect their property and reduce financial risk. However, it is important to consider the legal implications of requiring tenants to use a specific insurance company, such as the Fair Housing Act and Good Faith Estimate Requirements. Alternatives to requiring renter’s insurance include a co-signing policy and a security deposit. Ultimately, landlords must make an informed decision that is in the best interest of both parties.

Benefits of Renter’s Insurance

Renter’s insurance is an important tool for anyone living in a rental property. It provides financial protection against unexpected damages and liabilities. With renter’s insurance, a person can feel secure knowing their belongings are protected. For example, if their apartment is burgled or damaged by a fire, the renter’s insurance can help to cover the cost of the lost or damaged items.  Renter’s insurance also offers liability coverage. This can protect if someone is accidentally injured while on the rental property. The renter’s insurance can help to pay for medical costs and other damages stemming from the injury. Depending on the type of policy, renter’s insurance can also provide additional protection from libel or slander lawsuits.

Renter’s insurance can also provide peace of mind. Knowing that a policy protects their belongings can help people to feel secure in their rental properties. With a quality renter’s insurance policy, people can rest assured that their belongings are safe from unexpected damages or liabilities.  In addition, renter’s insurance is often quite affordable. Many insurance companies offer discounts on policies for renters, making this type of coverage even more attractive. The cost of the policy is usually much lower than the cost of replacing lost or damaged items. This can be especially beneficial for those who may not have the financial resources to replace damaged items immediately.

Reasons Why Landlords May Require Renter’s Insurance

Landlords may require renters insurance for a variety of reasons, but ultimately it comes down to the protection of their property and the reduction of financial risk. Renters’ insurance protects the landlord’s property by covering damages that may occur due to fire, theft, vandalism, and other disasters. This protection can help landlords avoid legal action if a tenant causes damage to the property. It also provides peace of mind knowing that their property is covered in case of an unexpected incident.

By requiring renters insurance, the landlord also reduces their financial risk. If a tenant causes damage to the property and they don’t have insurance, the landlord is responsible for the repair costs. This can be an expensive burden, but with renters insurance, the tenant’s policy covers the costs. If someone is injured on the property, the landlord’s insurance policy may not cover the costs of the medical bills. However, with a renters insurance policy, the tenant’s policy covers the costs of any medical bills. Ultimately, landlords require renter’s insurance to protect their property and reduce their financial risk, which is why tenants need to have it.

Legal Implications of Requiring Renter’s Insurance

Renter’s insurance is becoming increasingly common in many rental markets, and for a good reason. It can protect both the tenant and the landlord in the event of theft, loss, or damage to personal property and can even provide liability coverage if someone is injured in the rental unit. While it may seem like a good idea to require that tenants get renter’s insurance, there are some legal implications to consider.  Under the Fair Housing Act, landlords cannot discriminate against potential tenants based on their characteristics, such as race, color, religion, disability, familial status, or national origin. This means landlords cannot make renter insurance a requirement for certain tenants because of their race, gender, or other protected characteristics. Doing so may constitute a form of discrimination and could violate the Fair Housing Act.

In addition, specific rules under the Truth in Lending Act require landlords to provide a good faith estimate of the cost of a tenant’s insurance policy to prospective tenants. This means landlords must provide an estimate of the cost of the policy, as well as any additional fees or charges related to the policy. These rules also require that the insurance policy be offered to all prospective tenants, regardless of their characteristics.

Alternatives to Requiring Renter’s Insurance

A common alternative to requiring renters insurance is a co-signing policy. This policy requires a third-party guarantor willing to take responsibility for all the tenant’s obligations under the lease, including the payment of damages due to a tenant’s negligence. This person is usually a parent or close family member of the tenant who has good credit and is willing to assume responsibility for any damages in the event of a tenant’s negligence or breach of the lease.

Another alternative to requiring renters insurance is a security deposit. This sum of money paid at the start of the lease can be used to cover any damages caused by the tenant while they are in the rental unit. The security deposit amount typically depends on the value of the rental property. The landlord will often keep the security deposit if any damages occur during the tenancy, which can be used to cover the cost of repairs. If the tenant does not cause any damages, the security deposit is returned to them at the end of the lease.


It IS legal for landlords to require tenants to carry renter’s insurance, but the decision should be made carefully. Renter’s insurance provides financial protection and liability coverage, which can help protect a landlord’s property and reduce financial risk. However, if a landlord requires their tenants to use a certain insurance carrier, it could be seen as violating the Fair Housing Act and the Good Faith Estimate requirements. As an alternative, landlords can choose to have a co-signing policy or increase security deposits. Ultimately, landlords should weigh the pros and cons of requiring their tenants to have renter’s insurance and ensure their policy does not violate any laws.

At Famers Insurance of Stillwater, OK, we understand that choosing the right insurance policy is important for landlords. Our team of experts can help you find the right type of coverage to fit your needs and protect your property.