We always recommend landlords require by contract renters purchase and keep renters insurance during the lease period and that landlords obtain a copy of it before the renter is allowed to take occupancy. Here's why:
1. No cost to the landlord
2. Renters insurance pays for temporary living expenses if the house is not livable due to damage from a covered peril.
3. Landlord can file a claim on the renters insurance policy if the renters damages the property. This keeps the claim off the landlord policy and saves the landlord from paying the deductible.
4. Renters insurance protects the landlord as the renters policy will be primary coverage if the renter does something negligent and gets involved in a lawsuit. The liability coverage should provide a layer of protection to the landlord.
5. If the renters contents are damage from fire or burglar, the renters insurance will allow the renters to recover so the renter does not try to seek recovery from landlord.
Suzanne Brown Insurance Agency
A Texas Independent Insurance Agency with over 40 insurance carriers