A landlord should require the following amount of renters insurance for an average tenant: $100,000 in personal liability coverage, $30,000 in personal property coverage, and $1,000 in medical bills coverage. However, personal property coverage is really up to your tenant — if they don’t own a lot of property, or are very wealthy, they could get between $5,000 and $500,000 in coverage.
Remember that the purpose requiring your tenants to get renters insurance is really to prevent misunderstandings about who pays for what when disaster strikes. “How much” renters insurance is needed is up to your tenant and their appetite for risk — as long as they have it, the particular amounts aren’t too important.
It’s more important to monitor their policy and ensure that it doesn’t lapse, which could expose you both to financial risks. To keep track of your tenant’s renters insurance, ask them to add you onto their policy as an interested party. If they’re relucant to do so, stress that this won’t cost them anything and won’t let you file any claims on their insurance.