Is it Legal to Require Insurance?

Mandatory Insurance is Legal in Most States. Before making any change to your lease, check with your attorney to see what federal, state or local laws my be involved.

Can I force my residents to have "Renter's insurance?"

No. You can not require your resident to insure their own belongings, but you can typically require them to carry liability insurance. The term "renter’s insurance" is a broadly used term. Technically, renter’s insurance covers both personal property and liability. It is important to limit your insurance requirement to "liability" insurance. LeasingDesk is unique in that it offers a liability only option for your residents, thus enabling you to require insurance as a condition of residency.

Can my leasing agents sell renter’s insurance?

No. They are not licensed insurance agents. They can administer, or handle the paperwork, for a plan, but they can not sell. This is analogous to a rental car agent completing the loss damage waiver insurance for a rental car. Past efforts to increase renter’s insurance penetration rates have force the leasing agent to "sell" the residents on the need for renter’s insurance and the benefits of the particular plan they were selling. Making renter’s insurance a condition of residency removes the leasing agent from the selling process. Additionally, with LeasingDesk’s product, e.RenterPlan, the resident calls the underwriter directly with any questions regarding the plan, further removing your leasing agent from the selling process.

Can I force residents in the middle of their lease term to have renter’s insurance?

No. You can not bulk in renter’s insurance. You can only make renter’s insurance a requirement of residency for new leases, renewals, or month to month leases with thirty day notice.

Can I require my high risk residents to carry renter’s insurance?

No. Selectively requiring renter’s insurance opens fair housing issues. Therefore, requiring all residents, not just high risk residents, to carry renter’s insurance is the only course of action.
 
I require renter’s insurance in my lease, but I do not enforce this clause. Isn’t this good enough?

Probably not. Precedents are set only if you regularly and consistently enforce the clauses of your contract. Research shows that voluntary renter’s insurance plans typically resulting penetration rates of 5-15%
 
Can I mandate the company the resident buys their renter’s insurance from?

No. All you can do is state your insurance requirements. The resident has the choice on how to meet the requirements.