At Deca Property Management, renters insurance isn’t optional. Every resident is required to carry coverage, either through their own policy or through our Resident Benefits Package, which includes renters insurance through Second Nature at an industry-leading rate from an A-rated carrier. We enforce that requirement because we’ve seen firsthand how it protects St. Louis property owners from costly losses.
Two recent claims illustrate exactly why this matters.
Example #1: A Simple Mistake That Led to a $5,635 HVAC Replacement
A resident at one of our single-family properties attempted to clean the outdoor AC condensing unit using a power washer. While the intent was good, the force of the water bent the unit’s fan blade beyond repair, requiring replacement of the entire condensing unit.
Rather than facing an uncomfortable reimbursement conversation or asking the owner to absorb the cost, a claim was submitted through the resident’s renters insurance policy.
The claim process was straightforward:
- Claim submitted in less than five minutes.
- Replacement estimate provided by one of our preferred HVAC vendors.
- Claim approved within 15 days.
- Full payment of $5,635 disbursed for the repair.
- Owner cost: $0.
Example #2: A $74,504 Fire and Zero Dollars Out of the Owner’s Pocket
In January 2026, a resident reported a late-night fire at the rear of their home.
The investigation determined that an improperly discarded cigarette had traveled beneath a wooden deck and ignited nearby brush. The fire spread up the rear of the home, damaging:
- The deck
- Exterior siding
- Sliding glass door
- Interior framing
- Insulation
- Drywall
- Flooring
Fortunately, no one was injured, but the home suffered significant damage, with repairs totaling $74,504.14.
Our team immediately:
- Filed a claim under the resident’s renters insurance policy
- Coordinated with the adjuster
- Obtained contractor estimates
- Documented the damage
- Managed the claim through five months of negotiations
The final result: $74,504.14 paid to restore the property.
The owner did not file a claim with their own insurance carrier, did not pay a deductible, and did not assume responsibility for a loss caused by a resident’s negligence.
Why Does This Matter for Owners?
These two incidents were very different in scale. One was an accidental HVAC damage claim for $5,635. The other was a fire loss exceeding $74,000.
In both cases, the outcome was the same:
- The owner paid nothing out of pocket.
- The damage was covered by the resident’s insurance.
- The property was restored.
- The owner avoided filing a claim on their own policy.
That’s the purpose of requiring renters insurance. It isn’t a formality or an extra checkbox. It’s one of the most effective risk-management tools available to property owners, and it only works when the requirement is consistently enforced.
At Deca, it is.
Frequently Asked Questions: Renters Insurance Requirements for Rental Property Owners
Why does Deca require renters insurance on every lease?
Deca requires every resident to carry renters insurance, either their own policy or coverage through the Resident Benefits Package with Second Nature, because it shifts the cost of resident-caused damage away from the property owner. Two recent claims, a $5,635 HVAC replacement and a $74,504.14 fire repair, were both paid in full through the resident’s insurance at $0 cost to the owner.
Does renters insurance cover fire damage caused by a resident’s negligence?
Yes. In one recent case, a fire caused by an improperly discarded cigarette caused $74,504.14 in damage to a rental home’s deck, siding, sliding glass door, framing, insulation, drywall, and flooring. The resident’s renters insurance policy covered the full repair cost after a five-month claims process, and the owner paid nothing out of pocket.
Does renters insurance cover accidental damage to HVAC or AC equipment?
Yes. When a resident’s own actions accidentally damage equipment like an AC condensing unit, for example while attempting to clean it, the repair can be covered through the resident’s renters insurance rather than billed to the owner. In one case, a $5,635 HVAC replacement was approved and paid within 15 days of the claim being filed.
Who pays when a resident’s negligence damages a rental property?
When the resident carries renters insurance, as required on every Deca lease, the resident’s policy pays for damage caused by their negligence, not the property owner. This applies whether the loss is a small accidental repair or a major event like a fire.
Does requiring renters insurance protect an owner’s own insurance policy?
Yes. When a claim is paid through the resident’s renters insurance instead of the owner’s policy, the owner avoids filing a claim on their own coverage, paying their own deductible, or having the loss show up on their own claims history. In both examples above, the owner’s own insurance was never involved.
See How Deca Protects Your St. Louis Rental Investment
Requiring renters insurance on every lease is one of the ways Deca reduces risk for the owners we work with, alongside rigorous resident screening, in-house maintenance, and transparent accounting. If you’re evaluating a property manager who takes risk management seriously, contact us for a free rental analysis.