Does renters insurance cover me and my tenants?
Answers | 1
If allowed by your state, it's a good idea to require that your tenants maintain renters insurance and list you as an interested party. That way you'll be notified if they let the policy lapse. The cost of renters insurance shouldn't be significant, especially if bundled with their auto insurance. Some of our landlords have made this requirement part of their lease renewals and "offset" a portion of the rent increase to help defray the cost.
Since renters insurance only covers the tenant, you'll need landlord insurance, also known as dwelling/fire insurance to cover your exposures. With so many new landlords out their renting property for the first time, it's also important to note that homeowner insurance typically does not cover rental activity. If you've decided to rent a home that you or someone else used to live in, be sure that you have landlord insurance on that property and not homeowners insurance.