Renters Insurance: When Landlords Can Require Coverage (And When They Can't)

Landlords can legally require renters insurance as a condition of the lease, even though it's not mandated by law. Understanding when this is reasonable helps tenants make informed decisions.

What Renters Insurance Covers

Your landlord will have insurance for the building only - meaning you'll need renters insurance to protect your electronics, sporting gear, jewellery and basically anything else that's not nailed down.

Coverage typically includes:

Personal property protection
Liability coverage up to $20 million
Additional living expenses
Theft outside the home (optional)
High-value items (optional extra)

When Landlords Can Require It

While renters insurance isn't legally required, landlords can include it as a lease condition — and many do. Legal requirements:

Must be stated in lease agreement
Cannot increase cost mid-tenancy
Reasonable coverage limits only
Cannot profit from requirement
Must accept any legitimate policy

Cost Considerations

At around $13 a month, renters insurance is a low-cost way for tenants to protect thousands of dollars in property. Average costs:

Basic coverage: $150-200 annually
Standard coverage: $200-300 annually
Comprehensive: $300-500 annually

Why Landlords Want It

Benefits for property owners:

Reduces their liability exposure
Prevents disputes over damages
Indicates financially responsible tenants
Protects against tenant claims
Covers gaps in landlord insurance

Your Rights as a Tenant

Choose your own insurer
Select appropriate coverage levels
Cancel if you leave early
Refuse unreasonable requirements
Shop around for best rates

Making Smart Decisions

Many renters assume that a landlord's insurance will cover the renter's contents as well, which unfortunately is not the case. Consider:

Actual value of possessions
Liability risk factors
Additional living expense needs
Bundling with car insurance
Excess amounts

Red Flags to Avoid

Landlords requiring specific insurers
Kickback arrangements
Excessive coverage demands
Mid-lease insurance changes
Premium payment through agent

Bondinator helps demonstrate your reliability as a tenant through comprehensive documentation. While not insurance, our move-in and exit reports provide evidence that can support insurance claims and prove you're a responsible renter who maintains properties well.

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