I am a Landlord, Do I need to require tenant insurance?

Congrats you are on the right path to passive income and generational wealth. You are buying rentals and trying to manage your own portfolio since you are just starting out.

You found the home you ran the numbers you bought the house and now it is rented.

When you bought the house you found a trusty insurance agent to help you find a landlord policy for the best price for your new rental.

Securing the landlord policy means signing the insurance policy. And signing off on insurance requirements from your carrier.

One of those requirements on most likely every carrier out there is “you require the tenants to carry tenant insurance”.

What does this mean?

You require tenants to carry their own tenant insurance with liability (this will protect your insurance in case their are negligent in your property). Their insurance will become the first line of defense.

You want them to also carry at least $300,000 in liability. You want to make sure you or your business is named as additioally insured and that you require a paid in full receipt (you would be surprised at how many of these cancel after one month).

Make this part of your lease. Require the declarations page with you listed as an additional insured and a paid in full receipt as well as the $300,000 minimum liability.