There is no requirement that the homeowner have insurance but any smart and savy property owner would have at least the minimum coverage.
Tenants have no say in the matter and should have their own renter's insurance coverage. L is not responsible for loss/damage to tenants personal property.
If an owner has no insurance and the home valued at a replacement cost of $100K is destroyed by fire, hurricane, flood etc., property owner just lost $100K.
If T has a guest over and the guest tripped, fell and broke his neck, the property owner gets sued for $500K and there is no insurance to cover the claim. The owner may as well deed the property over to the injured claimant.
[Edited by HomeGuru on 03-30-2001 at 01:16 AM]