If someone is injured in our facility or building, renters insurance at least partially covers the liability for these incidents. Renters insurance would also cover things like temporary housing after a fire or flood. However, the landlord might end up on the hook if a tenant did not have renters insurance.
One of the great benefits of multifamily is economies of scale. For instance, large apartment complexes can set up something called a cooperative insurance policy for renters insurance. New renters will see their rent increased for say $10 a month but if claims stay low, the landlord can earn up to ~$5 back a month. If you have a 200 unit apartment building that means you could earn up to $1,000 a month or $12,000 a year. That might not seem like much but remember every dollar of income translates to an increase in the property value.
Note that it’s may not be legal to require tenants to use any specific insurer or agency and, depending on the state, it might not even be legal to require that they have rental insurance at all. It would be important to ensure that any affiliate or kickback arrangement is fully disclosed to the tenant.