This article was originally posted on April 27, 2022, and updated on November 11, 2026, to include the latest information available.
Renters insurance is a policy that covers a resident’s belongings and personal liability, two things the landlord’s property insurance doesn’t cover. For a small monthly fee, residents are covered against losses from events like fire, theft and water damage that would otherwise come out of their own pocket.
You likely know this already and may require renters insurance at your properties. But some residents hesitate to pay that little extra monthly fee. They might wonder:
- Is renters insurance worth the cost?
- What does it take to get set up?
- How can I trust the insurance I’m being offered?
We’re here to help you answer these questions, including a sample “elevator pitch” to make renters insurance easier to discuss with residents. To close, we’ll cover protection plans for self storage tenants.
Key takeaways
- Landlords can require liability coverage but not contents coverage or a specific provider
- Coverage typically costs a few dollars a week, far less than replacing possessions after a fire, theft or water damage
- Offering a policy option during online leasing makes signup easier and raises the share of residents with coverage
Is renters insurance worth the cost?
For most renters, yes. Coverage runs a few dollars a week, and a fire or theft without it could cost a resident far more to recover from.
You need to demonstrate to your residents the value they’re getting.
Renters should know that a landlord’s property insurance generally doesn’t replace their possessions. Renters insurance protects residents from having to pay for personal or property damage accidentally caused by them or factors such as:
- Fire
- Wind
- Lightning
- Water damage
- Theft
In what amounts to pennies a day, renters insurance gives total peace of mind against a worst-case scenario: losing everything they own. The cost is low enough that it shouldn’t leave anyone strapped for cash.
Depending on the state, some renters insurance plans go further than others with:
- Optional pet damage coverage
- Optional water/sewer coverage
- Guaranteed premiums (no increases resulting from past claim activity)
- Ability to include unrelated roommates on one policy
- Replacement cost coverage for personal property
Pro tip: Keep the focus on the positives: total coverage, low cost, peace of mind.
What does it take to set up and manage my account?
Renters insurance is easy to set up. Most providers let renters enroll online in minutes. If your property management software includes the option to sign up for renters insurance during the online leasing process, this will help increase the number of residents with coverage because they won’t have to look elsewhere to purchase a policy.
With the right provider, renters will be able to enroll online within minutes. They’ll pay an affordable rate for maximum protection, with convenient monthly payments and guaranteed premiums. They’ll also have an easy way to access their policy information and file claims online. Property managers benefit from detailed compliance reporting and policy activity tracking in addition to protecting their assets.
How can I trust the insurance I’m being offered?
Trust matters when you discuss renters insurance. People want confidence in you and in the company that underwrites the policy. That’s why we offer ResidentShield, a proven renters insurance option that fully integrates with Yardi Breeze and Yardi Breeze Premier.
Residents can always go with any provider they choose, but having a preferred policy available during the leasing process makes things easier for everyone. Talk to new residents about the policy you offer and why.
Pro tip: ResidentShield includes promotional brochures that help you explain the benefits of the coverage.
Customer service matters
ResidentShield utilizes insurance carriers that specialize in multifamily renters insurance, so the processing of loss claims is done by specialized adjusters who deal exclusively in renter claims. Let your new renter know that your preferred policy provider meets community liability coverage requirements and has multiple plans to protect their belongings.
Policy types
ResidentShield Master Policy
The master policy offers reduced risk and peace of mind for you and your residents. This policy covers liability only and does not include protection for residents’ possessions.
ResidentShield HO4 Policy
An HO4 policy goes further than a standard property master policy by offering coverage directly to renters. Residents can enroll online in about five minutes, securing liability coverage up to $100,000 (with higher limits available) and personal contents protection. A single policy can cover up to four unrelated adult occupants. The average premium for $100,000 in liability and $10,000 in personal contents is approximately $13 per month (rates vary by location and selected options).
Prepare your elevator pitch on renters insurance
You may only have one conversation with your new resident about renters insurance, likely between the time you accept their application and receive their deposit. Even if you require liability insurance, you can show them the benefits of personal coverage. A quick pitch similar to the one below can help you discuss renters insurance and get residents to see the importance of full coverage.
Sample renters insurance pitch
Renters insurance works a lot like car insurance, but instead of protecting just one asset, it’s covering where you live and, depending on your plan, everything you own and anyone who accidentally gets injured in your home. Not everyone knows that in the event of a break-in or event that causes loss of property, the landlord and property owner generally aren’t responsible for replacing your things. So, in what amounts to a rate virtually everyone can afford, you’re protected against the worst-case scenario. We can show you several plans, and you can pick one with a deductible that works for your budget.
A protection plan for self storage tenants
Self storage tenants should understand what is covered and where they are liable. Discuss the importance of a stored goods protection plan just as you would for residential tenants. Focus on the following coverage benefits:
- Fire or lightning
- Burglary
- Windstorm or hail
- Smoke
- Explosion or sonic boom
- Strikes, riot or civil commotion
- Aircraft, self-propelled missiles or spacecraft
- Vehicles
- Landslide, including sinkhole collapse
- Vandalism or malicious mischief
- Vermin
Residential renters insurance doesn’t work well for self storage tenants. It usually offers limited protection for stored goods, given that the coverage needs are different. Any storage tenant at a participating facility can purchase a GoodShield self storage stored goods protection plan. They simply need to use their Yardi Breeze Premier tenant portal.
FAQ
Is renters insurance required by law?
No state requires renters to carry insurance. Landlords and property managers can generally require it as a lease condition, though, and many do. Requirements can differ for affordable housing programs, so check the rules that apply to your properties.
What does renters insurance not cover?
Standard policies typically exclude flood and earthquake damage, which need separate coverage, and they don’t cover the building itself since that’s the owner’s policy. A roommate’s belongings usually aren’t covered either unless the roommate is named on the policy.
Does renters insurance cover items in a self storage unit?
Sometimes, but only partially. Many policies include limited off-premises coverage, often capped at a small share of the contents limit, and some perils common in storage aren’t covered at all. That’s why a dedicated stored goods protection plan is the better fit for storage tenants.
