Illinois Rules on Renters Insurance for New Tenants

Starting a new rental in Illinois often raises questions about what protections are required and what is simply recommended. One topic that comes up frequently is renters insurance. Understanding your rights, responsibilities, and what your landlord can legally ask for is crucial to having a smooth move-in experience. This guide walks Illinois renters through the key information about renters insurance regulations, common lease practices, and how to protect yourself.

What Is Renters Insurance and Why Do Landlords Ask For It?

Renters insurance is a policy you purchase to help cover your belongings and personal liability in case of theft, fire, water damage, or injuries to guests. Standard policies do not cover the building or property itself; that’s the landlord’s responsibility. Instead, renters insurance covers:

• Your personal property (like electronics, clothes, and furniture) in case of certain losses
• Liability expenses if someone gets hurt in your apartment
• Temporary living expenses if your rental becomes uninhabitable due to a covered event

Landlords in Illinois often encourage or require tenants to have renters insurance because it reduces disputes if personal property is damaged, and it can protect landlords from liability claims if someone is injured on the premises.

Are Landlords Allowed to Require Renters Insurance in Illinois?

Currently, Illinois state law does not prohibit landlords from making renters insurance a requirement in a rental agreement. This means your landlord can require you to have and maintain renters insurance as a condition of your lease.^[1] If renters insurance is required, this condition must be clearly stated in your written lease agreement. Make sure to ask for clarification if you aren’t sure about the policy the landlord expects.

If your landlord requires proof of renters insurance, you typically need to provide a copy of your insurance declaration page or a certificate of coverage when you sign the lease and may need to show proof of renewal at each lease renewal period.

What the Lease Can Require

Most lease agreements in Illinois that require renters insurance will specify:

• Minimum coverage limit (for example, $100,000 liability protection)
• Types of coverage needed (personal property, liability, guest medical)
• The landlord/building listed as an “additional interested party” for notifications (not as a beneficiary)
• Proof of coverage provided at lease signing and renewal

Official Regulations and Relevant Legislation

Illinois rental agreements and landlord-tenant relationships are governed by the Illinois Landlord and Tenant Act (765 ILCS 705) and, in the City of Chicago, the Chicago Residential Landlord and Tenant Ordinance (RLTO).^[2][3] Neither law prohibits insurance requirements, but any mandatory insurance must be clearly stated in the lease and cannot violate federal or state anti-discrimination laws.
If you want to review these laws, visit the Illinois General Assembly website for all current statutes.

Required Forms and Disclosure in Illinois

There are no statewide mandatory forms related to renters insurance requirements. However, landlords:

• Must: Include any insurance requirement in the written lease contract.
• May: Request proof of insurance by asking for your "Evidence of Renter's Insurance" (sometimes called an insurance declaration page, provided by your insurance company).

If the lease is in Chicago, the RLTO Summary and Disclosure Form must accompany every new lease, explaining renter and landlord rights.^[4]

For an example: If your new Chicago apartment lease says renters insurance is a condition, your landlord may ask you to email or upload a copy of your Evidence of Renter’s Insurance before providing keys. The actual renters insurance policy is obtained from a licensed insurance provider.

What Should You Watch Out For?

It’s important to:

• Read your lease thoroughly to check for an insurance requirement.
• Look for the required types and limits of coverage, and ensure your insurance matches.
• Never list your landlord as a beneficiary (only as an “interested party” or “party to be notified”).
• Keep a record of your proof of insurance to share upon request.
• Know that your landlord cannot force you to buy insurance from a specific company.

Which Agency Handles Rental Disputes in Illinois?

Disputes between tenants and landlords statewide are handled by local county courts. In the City of Chicago, additional help is offered by the Chicago Department of Housing. For more information, see Illinois’ Landlord and Tenant Court Guide and the Chicago Renter Services portal.^[5][6]

FAQ: Renters Insurance for Illinois Tenants

1. Can my landlord require me to buy renters insurance?
   Yes, if your lease includes a renters insurance requirement, Illinois law permits landlords to require it as a condition of renting.
2. What happens if I don’t get renters insurance?
   If your lease requires it and you don’t comply, your landlord could issue a lease violation notice or refuse to hand over keys at move-in. You could potentially face eviction for ongoing noncompliance.
3. Does renters insurance cover my landlord’s property?
   No, it only covers your belongings and your liability. The landlord should have separate insurance for the property itself.
4. Do I have to use a specific insurance company?
   No. You may choose any licensed insurance provider for your renters insurance policy in Illinois.
5. Where can I find official Illinois leasing laws?
   You can review Illinois renting laws on the Illinois Landlord and Tenant Act and the Chicago RLTO pages.

Key Takeaways for Illinois Renters

• Illinois landlords can require renters insurance if it’s in your lease.
• Proof of renters insurance is typically an evidence or declaration page.
• Always read your lease carefully and ask questions before signing.

Renters insurance is often a smart choice for your own protection, even if it isn’t strictly required.

Need Help? Resources for Renters

• Illinois Attorney General: Landlord-Tenant Rights Resources
• City of Chicago Renter Resources and RLTO Info
• Illinois Legal Aid: Landlord & Tenant Court Help
• Full Text of Illinois Landlord and Tenant Act
• For court forms and guidance, visit your local Illinois circuit court.

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1. Illinois Landlord and Tenant Act (765 ILCS 705): Read Illinois Landlord and Tenant Act
2. Chicago Residential Landlord and Tenant Ordinance (Municipal Code, Ch. 5-12): View RLTO Info
3. Chicago RLTO Summary and Disclosure Form: Download RLTO Summary Form (PDF)
4. Illinois Legal Aid Landlord & Tenant Court: Landlord and Tenant Court Guide
5. City of Chicago Renter Services: Chicago Department of Housing - Renters

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