Question about renters insurance

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My landlord is requiring that all tenants have a renter's insurance policy that includes them as an

"additional interest/insured/mortgagee" (their exact words)

I'd be interested in any feedback legal minds here have on this.

A lot of people in the building don't know what it means, and they went ahead and changed their policies.

I discussed it with my insurance company and they don't do this. Now I am looking for a new apartment.

[MerryHolidays]

1. AFAIK, it's extremely common to have the LL as an additional insured

I've done this via a major insurance company, and I'm surprised it's an issue.

Here's something I found on the internet: https://www.hippo.com/blog/can-landlords-require-renters-insurance

[More_Cowbell]

2. Here's an alternative point of view

"However, adding your landlord as an additional insured makes it impossible for either of you to make a claim against one another's liability policies for damages." And "If your landlord requests you to add them as an "additional insured" to your renters policy, they likely mean "additional interested." Clarify what they mean before adding them as an additional insured under your renters insurance."

The OP's landlord had multiple language in there: additional interested, insured, mortgagee.

https://www.valuepenguin.com/renters-insurance-interested-party

It's interesting that that hippo.com mentions the landlord as an interested party once, but the whole rest of the article is just about the advantages of renter's insurance to the renter.

This seems to be a complicated subject.

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3. "Interested" is not a problem, according to my insurance company.

If you add their name as property owner or party of "interest" all it means is they are notified when you policy renews, so they know you have insurance. Renters insurance is not required by law, but landlords can require it.

"Insured" is a problem, because the renter and the landlord have different legal interests. The purpose of rental insurance is supposed to be to insure the renter's personal property. It was never intended to insure the landlord's property.

Why should the renter pay to insure the landlord's property? Shouldn't they have their own insurance? Why shouldn't a tenant be able to sue a landlord whose neglect of the property leads to fire or water damage of their personal property?

"additional interest/insured/mortgagee" is confusing, and since my insurance company is highly skeptical of this request, I am too. But its never come up before. I've always thought of renter's insurance as a really smart idea but something the landlord didn't really have an interest in.

[csziggy]

4. It's so they cen be sure you have insurance

Additional insured vs. additional interest in renters insurance

Some landlords may require you to list them on your renters insurance policy. Like lienholders for car insurance and mortgage lenders in homeowners, your landlord becomes an “additional interest” in this scenario. Many landlords do this as a way to verify that you are carrying the renters insurance that might be required in your lease.

Being listed as an additional interest on their tenant's renters insurance policy allows a landlord to stay informed of any policy modifications or non-renewals. It's a simple way for a landlord to ensure their rental property is protected. A landlord listed as an additional interest does not have coverage via the policy, and cannot file claims (unless the claim comes against your liability coverage for damages or injuries you caused).

Listing a landlord as an additional insured is — in most cases — a bad idea. It essentially extends your coverage to them, which can lead to confusion if a claim needs to be filed. It’s a better idea for a landlord to be listed as an additional interest.

https://www.thezebra.com/auto-insurance/insurance-guide/additional-interest-vs-additional-insured/

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5. Well that accounts for "interest" but not for "insured"

and I think people are likely to assume that if one is ok so are the others.

Having your landlord notified of insurance renewal is harmless.

Insuring your landlord and surrendering your right to sue your landlord if your property is destroyed is a really bad idea. But people will give that right up freely if they don't understand what they are doing.

The insurance company only issues one check for a claim. If two parties are insured, they both have to sign the check. So the landlord can effectively prevent the renter from collecting any damages if they want to. And vice versa.

[csziggy]

6. I lease part of my farm to a family

In order to make sure they have insurance that will also cover liability for me, they have to name me on their insurance policy. I get a confirmation of that coverage every year when they renew it. Since it is considered a high risk property, having horses on it, this is very important.

I expect this is similar.

[milestogo]

8. What does it mean to "name" you?

Does it merely mean to notify you of their coverage? Or does it mean that you are actually insured by that coverage?

Can you file a claim against it?

[csziggy]

10. I am listed as one of the people covered by the liability portion

No, I would not file a claim unless carelessness by the people leasing the property caused an injury to me.

It is mostly so that if someone else were injured both the people who lease from me and I are covered by the policy.

[PoindexterOglethorpe]

7. Interesting.

I am not currently a renter, and in the distant past when I was, I never had renters insurance, but what I learned in this thread is fascinating and useful.

Thank you for the original question which led to a lot of information.

[milestogo]

9. I didn't always have it.

Then I had a co-worker who had massive damage in her apartment. Her upstairs neighbor left a candle burning and a fire started. The fire department used plenty of water putting it out.

Well, all that water seeped down into my co-workers apartment, ruining furniture and electronics. This was no fault of hers. Fortunately she did have renters insurance and was able to replace everything that was damaged.

So even if you're a careful person, you need insurance because everyone else may not be so careful.

[PoindexterOglethorpe]

12. Yes. While I've been a home owner for

a very long time, it's not unreasonable that I might become a renter again in the future. And I should check in with my son, who is a renter and see if he has insurance. Knowing him, he probably does. But it's worth checking anyway.

Another small point about owner vs renter. When I was a renter I didn't pay any attention to all sorts of things. Then I became a home owner. When we sold our home in Boulder, CO, we rented it back from the new owners as there was a month or more before we would be actually moving to Kansas, our new home. During that time the garage door opener had problems. I called a local company and had it fixed. I think I might possibly have left a copy of the bill for them, and I do recall I left a note about the fix. I was completely in the mind set of an owner and got the problem taken care of. The cost, maybe fifty dollars, was irrelevant. Looking back, it was the sense of responsibility. I hope that if I am ever again a renter, I retain that sense of responsibility.

[Mosby]

11. Is the landlord the property manager or an owner?

There are layers to this.

The property managers often request that the investors add them as additional insured. They also may request that the tenant add them to the renters property to protect them from lawsuits from the investors concerning tenent screening, tenant caused damage to other units, etc.

I would go with what your insurance company said, but I don't know if the management co or owner can cancel or refuse to renew based on this, I personally never experienced this as a renter or owner.

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13. I think the property manager is just carrying out the orders of the owner.

4 buildings, over 100 units, new owner. Buildings are 50+ years old and have some problems. Roof and ceiling crashed thru an apartment when the snow melted recently.

I think they are afraid of being sued by tenants.