Understanding who is responsible for insurance coverage in a rental property isn’t always straightforward. Both landlords and tenants need different types of protection — and knowing which insurance policy applies to whom can prevent legal disputes, financial losses, and headaches down the line.
This guide breaks down:
- The difference between landlord and renter’s insurance
- What types of coverage each party should consider
- Whether landlords can require tenants to have insurance
- How GPS Renting helps both landlords and tenants find the right coverage
Key Takeaway
Landlord insurance protects the structure. Renter’s insurance protects the tenant’s belongings. Both are essential. GPS Renting ensures everyone knows what’s required — and connects you to the right resources.
Landlord vs. Renter’s Insurance: What’s the Difference?
Landlord insurance (also called dwelling or rental property insurance) is designed to protect the property owner from damage to the structure, loss of rental income, and liability for injuries on the property.
Renter’s insurance, on the other hand, protects the tenant’s personal belongings, provides liability coverage for the tenant, and may include loss-of-use coverage if the home becomes uninhabitable.
Key difference: Landlord insurance covers the building. Renter’s insurance covers the tenant’s possessions and liabilities.
Learn more about essential roles of a successful landlord in Seattle
Sources:
The Zebra — Renter’s vs. Landlord Insurance
Farm Bureau Financial — Renters Insurance vs. Landlord Insurance
Can a Landlord Require Tenants to Get Renter’s Insurance?
es. In most U.S. states, landlords are legally allowed to require tenants to carry renters insurance as a condition of the lease.
This policy helps protect both parties:
- The landlord avoids disputes over damaged tenant property.
- The tenant has coverage for theft, fire, or accidents.
Travelers Insurance notes that requiring renters insurance can help reduce claims against the landlord’s policy and set clearer expectations (Travelers.com).
See our guide to Seattle landlord-tenant laws
What Should a Landlord’s Insurance Cover?
Typical landlord insurance should include:
- Dwelling coverage (for the structure)
- Liability protection (for injuries or accidents)
- Loss of rental income (if the unit becomes uninhabitable)
- Optional add-ons like flood or earthquake insurance in some regions
Some landlords also consider Rent Guarantee Insurance, which can help cover lost rent if a tenant defaults. While more common in the UK, some U.S. carriers are starting to offer similar products.
Source: Investopedia — Rent Guarantee Insurance
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What Should a Tenant’s Insurance Cover?
Tenants should look for:
- Personal property coverage
- Liability coverage
- Loss-of-use coverage (hotel stays, meals, etc. if displaced)
- Optional coverage for high-value items (e.g., electronics, jewelry)
Policies typically cost between $10–$25/month, making it an affordable layer of security.
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Source: Allstate — Is Renters Insurance Required?
How GPS Renting Supports Landlords and Tenants with Insurance
At GPS Renting, we streamline the rental process by ensuring both landlords and tenants are aware of their insurance responsibilities. Here’s how we help:
For Landlords:
- Insurance requirement support: We can include renters insurance requirements in lease agreements.
- Vendor recommendations: We guide owners to trusted landlord insurance providers based on property location and risk.
- Property protection guidance: Our team helps ensure your insurance matches the level of coverage needed for your rental type and location.
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For Tenants:
- Education at move-in: Tenants receive an onboarding checklist with insurance guidance.
- Suggested providers: We point tenants to reliable, affordable renters insurance options.
- Lease clarity: Our leases clearly outline insurance expectations to avoid misunderstandings.
- Use our online portal to manage documents and payments
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Final Thoughts: Get Protected the Right Way
Both landlord and renter’s insurance play vital roles in protecting rental properties. Landlords should never assume a tenant’s policy covers their building. Tenants should never assume the landlord’s policy covers their belongings.
At GPS Renting, we believe in setting both parties up for success and peace of mind. If you’re unsure what coverage is right for you — or want help requiring insurance in your lease — we’re here to help.
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