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  1. #1
    Join Date
    Jul 2008
    Posts
    1

    Default Renters Insurance

    Our landloard recently change hus new leases to require 1.000.000 in renters liability insurance. That is no problem but a bit excessive for the area rental units. We also might require to name him as "additional insured" on our policy. Apparently from what I have read most insurance agencies will not do this because it involves a conflict of interest between the renter and the apartment owner with them stuck squarley in the middle if anything happens. Do you know anything about this situation or have any thoughts on it? AK

  2. #2
    Join Date
    Jan 2008
    Location
    Toledo, OH
    Posts
    16,307

    Default Re: Renters Insurance

    Insurance companies have a very good reason for refusing to do this, as you've already noted.

    Don't name him as an additional insured. Renter's insurance is for the CONTENTS of your apartment and for things that happen in your apartment (someone slips and falls). It has nothing at all to do with the apartment itself, which your landlord should have incured.

    You don't want your landlord to have a claim on the reimbursement for YOUR stuff if something should happen to the apartment.

    There's a good article about renter's insurance here.

  3. #3

    Default Re: Renters Insurance

    Usually it is not a problem to name him as an additional insured and he has every reason to request this. If this is a residential unit, the amount seems unreasonable and you can move. If it is a commercial unit, the amount is standard. 100,000 in liability should be sufficient for a residental unit. He will not have a claim on your contents. This just makes your insurance primary for liability.

  4. #4
    Join Date
    Mar 2008
    Posts
    1,995

    Default Re: Renters Insurance

    I've been doing rentals for 25 years, and in the last dozen started to require renters insurance. I did this because most renters are under the distinct impression that the landlord carries insurance, and the owners insurance covers all their belongings, carelessness and so forth. And when something happens, they're shocked to learn otherwise, then visit an attorny to find other reasons to sue, such as for negligience.

    One tenant of ours lost several items in a burglary, and when he discovered that his belongings are not covered for theft under a landlords policy, after visitng an attorney, discovered the alternative theory of "the lack of security".

    I have no intentions of turning my rentals into Fort Knox, or be responsible for every fur coat, or diamond rings, or thousand dollar shoes my tenants possess, hence "renters' insurance".

    While $100,000 is more than enough for routine fire, theft, and other casualty issues, it's far from enough for peronal injuries such as slips and falls, so if a a careless tenant causes a visitor to fall down a flight of stairs, and his visitor becomes a quagipelgic, it's lawyer time, and it's back to suing the landord.

    I don't specify a limit on my leases. But I ran a business where the lessor required at least a $1,000,000 policy coverage, with him named as the additional insured. Sure enough, there was an accident on the property, and we were BOTH sued.

    Renter's insurance is not all that expensive, and once I've tried buying it for my tenants but was told "I do not have an insurable interest". At one time, I reimburse tenants for buying it, till one wise guy collected from me, then cancelled his pollcy and collected on MY refund. I only found out about it by accident when he left his windows open one day to to go to work, then a rain storm hit, and thousands of dollars of his belongings were damaged. He had the nerve to try to collect from me, but I said "file a claim on your insurance". His answer "but I cancelled it".

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