Question
As-salamu alaykum wa rahmatullahi wa barakatuh. I have a question about tenant’s (renter’s) insurance. If a landlord requires tenant’s insurance as a condition for renting an apartment, are we allowed to purchase it? And is tenant’s insurance considered a necessity for living in a rental property in Edmonton? Jazakumullahu khayran.
Answer
Alhamdulillah, wassalatu wassalamu ala rasulillah, wa ala alihi wa sahbihi ajmain.
The Nature of the Contract
Tenant’s insurance in its conventional form is not permissible in principle, as it shares the same contractual issues of gharar, maysir, and riba found in commercial insurance. However, in the case of renting a property, the insurance is not sought for itself, but is made a legal stipulation by the landlord as part of the lease. The primary contract is the rental agreement, while the insurance is only a secondary condition attached to it.
The Question of Hajah
This situation is not usually a case of darurah (dire necessity), but it is a recognized hajah ‘ammah (general pressing need). In places like Edmonton, most landlords will not lease without proof of tenant’s insurance. Without it, access to housing becomes severely restricted.
The fuqaha state: “Yughtafar fi al-shay’ ḍiman ma la yughtafar fihi qasdan” (يغتفر في الشيء ضمنا ما لا يغتفر فيه قصدا) — “What is tolerated as a secondary condition is not tolerated as an independent objective.” Since the goal is securing housing through the rental contract, the insurance requirement is tolerated as a secondary condition and does not invalidate the lease.
Final Ruling
Tenant’s insurance is not permissible in principle, but if it is a condition for renting, it is permitted due to hajah. The rental is the primary contract, and the insurance is only a secondary stipulation imposed by law or landlord. A Muslim should suffice with the minimum coverage required and avoid it if a reasonable alternative exists.
And Allah knows best.