Insurance Requirements Concern Tenant, but They Are Legitimate
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Q: I am a tenant, and the owner of my apartment complex recently sent notification to the residents that as a condition of our lease, we are required to have $100,000 in renter's insurance coverage in case of damage to the apartment.
We are also required to include the apartment complex as an additional insured and a vested party for reimbursement should there be any damage.
If we don't follow through, we are told, we will be in violation of the lease.
I live in a one-bedroom apartment and have insurance coverage for far less than the amount required, and it does not include reimbursing the apartment complex for damage.
Is what management is doing legal? Can the complex force me to get extra coverage that I don't need that also includes reimbursing the complex?
I was told that it should have its own insurance to cover loss.
A: Property manager Griswold replies :
Yes, it can make renter's insurance a requirement of your lease as long as it is consistent and applies the policy to all tenants. From the landlord's point of view, the issue isn't whether you have possessions that need $100,000 in insurance coverage but that you or your guests could create a situation in which major damage occurs, such as a fire or flood. That is why the minimum amount is $100,000 and management is insisting that the apartment complex be named as an additional insured under your renter's insurance policy.
The apartment complex probably has its own insurance coverage that has much higher levels of coverage for all types of losses. Its policy could require that all tenants must have renter's insurance. Note that the owner's insurance policy will generally not provide you with insurance protection for loss or damage to your personal property unless it is due to some negligence by the owner. The renter's insurance and the owner's insurance work together to provide more thorough coverage.
Contact your insurance agent and seek to increase the policy limit to $100,000. It should not significantly increase your premium.
I hope you are right that this is coverage you never need, but that is always true with insurance: You hope you never need it, but the peace of mind of having the coverage is worth a lot.
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