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If you own a rental property in Texas, then you likely carry property insurance on it. Your property insurance offers limited coverage that does not extend to your renters. Generally, it covers the structure and may offer some liability coverage. The interior of the unit, including all the belongings of your renters, do not qualify for coverage under your policy. This is the main reason why you should consider requiring renters to carry rental insurance.

After a disaster, such as a fire, that destroys the rental unit and leaves your tenants with no place to live, they may look to you for help. It is not your responsibility under the law to help them. With renters insurance, explains Forbes, they may be able to get assistance with paying for a hotel stay while the rental property undergoes repairs or until they find a new home.

You also have to worry about a possible lawsuit. While it may not end in their favor, fighting against a tenant lawsuit will cost you money and time. If your renters have insurance, they are less likely to try to take you to court to pay for their loss.

You can usually include a clause in your lease that mandates renters insurance coverage. If you do make it a requirement, make sure that you let your renters know, and require that they provide you with proof of coverage. You may also want to let them know that renters insurance tends to be one of the cheapest insurance options, so it should not cost them too much. This information is for education and is legal advice.