Can You Legally Require Renters' Insurance To Cover Specific Climate Risks?

By Bobbye Joe McMillan

Bobbye Joe McMillan is the driving force behind Cornerstone Property Management, bringing over 30 years of expertise in real estate to help clients achieve their property goals.

Can you ask tenants to carry renters’ insurance for things like fire, floods, or hurricanes? A landlord once approached me after one of his rental properties almost got caught in a flash flood. His tenant didn’t have coverage, and even though he had landlord insurance in place, he could still get pulled into claims over tenants’ belongings, temporary housing, or liability.

I took a closer look at their lease agreements. I had to be deliberate about what was required and how to phrase it. Along the way, I picked up a few lessons worth sharing.

Making renters’ insurance part of the lease. In most states, landlords can legally require tenants to have renters’ insurance, which is similar to asking for a security deposit or proof of income. The key is clarity and consistency. I made sure it was clearly stated in the lease, and that my clients told their tenants upfront before they signed or renewed, and applied it the same way to everyone.

This kind of insurance protects the renters’ personal property, offers liability coverage, and keeps their claims separate from the landlord’s policy. It’s a simple step that can save a lot of trouble later.

Handling climate-specific risks. It gets a little more complicated when you want coverage for specific risks. Landlords can ask tenants to cover fire, smoke, or water backup, but they usually can’t force optional add-ons like flood insurance.

Standard policies often don’t cover floods from natural disasters. For properties in flood-prone areas, I found it helpful to strongly recommend flood insurance, share information about local risks, and, when allowed by law, suggest coverage for “water damage” or “loss of use.” The goal is to help tenants protect themselves while also keeping the property safe.

Why clarity and documentation matter. Most legal issues don’t come from requiring insurance, but from being unclear or inconsistent about it. That’s why you have to make sure that the lease spells out the minimum liability coverage, identifies which climate risks need to be covered, and explains what happens if the policy lapses.

More importantly, make sure they list the landlord as an “interested party” so they can get notified if a policy is canceled. Taking these steps keeps you compliant and adds an extra layer of protection if something goes wrong.

Renters’ insurance doesn’t replace your policy. Even when tenants carry solid renters’ insurance, I still advise landlords to maintain their own coverage. Their policy handles structural damage, lost rental income, and liability—things renters’ insurance doesn’t cover.

Think of renters’ insurance as a helpful complement to a landlord’s own policy, but not a replacement. It protects the tenants’ belongings and the property, while also preventing disputes in the long run.

So, can landlords require renters’ insurance for climate-related risks? The simple answer is, yes. The key is to do it strategically, clearly, and legally. If you’re unsure about what’s allowed in your area or want help in managing a lease, I can guide you. Don’t hesitate to call or send me an email. Taking the right steps now helps protect any property without stepping into legal trouble.