Landlords often request that tenants add them as an additional insured to their renters’ insurance policy. It is helpful to understand why this may be requested and the benefits for the tenant as it pertains to adding their landlord as an additional insured on their renters’ insurance policy, which this review discusses in detail.
What Is Renters Insurance?
Renters’ insurance, also called tenants’ insurance, is an insurance policy for the tenant of a dwelling. It offers some of the major benefits of a standard homeowner policy with the exception of not covering the actual dwelling itself. Primarily, renters’ insurance protects the tenant from loss of personal property within their dwelling due to fire, theft or another form of loss.
What Is An Additional Insured?
An additional insured is anyone who enjoys the benefits of the insurance policy that is not the primary policyholder. In general, an additional insured is added when the additional party carries some of the risk related to the insured property.
What Is The Purpose Of Listing My Landlord As An Additional Insured?
As mentioned, renters’ insurance primarily covers the renter (tenant) of a rental property; the landlord is not initially listed on the insurance policy. However, landlords often request that tenants add them to their renters’ insurance as an additional insured to ensure they are also protected under the policy.
This is particularly helpful for the landlord if there is a liability claim made against the tenant. In this case, the landlord may be involved with the lawsuit against the tenant. For example, if the tenant is sued because their dog bit someone, then the landlord may need legal representation as well.
In many instances, the landlord can then use the insurance company’s attorney rather than hire one on their own. Of course, renters’ insurance policies are not all the same, and understanding what the landlord would, and would not, be covered for is important when adding them as an additional insured.
What Limitations Are There On Coverage For An Additional Insured?
Those who are listed as an additional insured on a renters’ insurance policy usually do not have the same level of coverage as the primary policyholder, the tenant in this case. An additional insured may still be liable for the costs associated with claims of liability if they have not maintained the dwelling as required.
For example, if the landlord fails to fix a broken front porch step in a timely manner after a request from the tenant is made to do so, and then a guest of the tenant is injured as a result of the faulty step, the policy may not cover the landlord as it does the tenant. Landlords should carry landlord insurance and should not rely upon being listed as an additional insured on the tenant’s renters’ insurance.
What Are The Pros And Cons Of Adding My Landlord to My Renters Insurance?
For landlords, the primary benefit of being added as an additional insured is the ability to protect themselves financially from claims that they were liable for injury or illness. The drawback, however, is that listing an additional insured may cost more. In most cases, the landlord can reimburse the tenant for the cost to be added as an additional insured, which is generally a low cost. Overall, adding your landlord to your renters’ insurance is a way to help protect them in areas their home insurance or landlord insurance policy may not as well as protect yourself as the primary policyholder.
Is Listing My Landlord On My Renters Insurance A Requirement?
Tenants are not required to list their landlord on a renter insurance policy; however, some landlords may require the tenant to do so before agreeing to lease to the tenant. Renters insurance, first and foremost, is designed to protect the renter from high costs associated with property damage, vandalism and other circ*mstances that may be out of the tenant’s control.
How Do I Know If I Should List My Landlord On My Renters Insurance?
If your landlord does not mention listing them as an additional insured on your renters insurance, then it may be acceptable to leave them off. If you are unsure, you may ask the landlord if they want to be added to the policy, and if so, will they be reimbursing you for the additional cost, if applicable.
Contact Pro Insurance Group For More Information About Renters Insurance
Are you interested in landlord and/or renters insurance? If so, contact Pro Insurance Group today to learn more about your policy options and how a policy with us can benefit you. We are more than happy to answer your questions and concerns and help you make informed decisions about your coverage needs.
FAQs
Listing a landlord or property management company as an interested party serves as proof of your renters insurance. It will let them know of any changes that could affect your rental agreement.
Why do landlords want you to have renters insurance? ›
Unlike some other states, California landlords are allowed to require tenants to obtain and maintain renters insurance while they are under the terms of the lease. This is done in part to protect landlords from lawsuits in the event that damage to the property causes it to become uninhabitable.
What does it mean to add an additional interest on renters insurance? ›
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.
Do most landlords require renters insurance True or false? ›
Renters insurance isn't legally required, but a landlord can require tenants to have a renters policy. Many landlords want tenants to be insured to help avoid potential disputes if, say, their belongings are damaged while on the property, according to the Insurance Information Institute (III).
How should a person decide how much coverage she needs when selecting renters insurance? ›
Bottom line: Choose your coverage amount based on how much stuff you have and how much it would cost to replace them. Btw, if you need coverage for your big-ticket items, such as your jewelry or fine art, you'll want to look into our Extra Coverage (also known as scheduled personal property coverage).
Should a landlord be named on renters insurance? ›
Your landlord shouldn't be listed on your renters insurance policy as an additional insured. Having an additional insured on your renters insurance means that you would be paying to cover them and their personal property too.
What does renters insurance actually cover? ›
Renters insurance covers personal property, personal liability, medical payments and additional living expenses or loss of use, up to the limits of your policy.
Should I add landlord as additional insured? ›
If your landlord does not mention listing them as an additional insured on your renters insurance, then it may be acceptable to leave them off. If you are unsure, you may ask the landlord if they want to be added to the policy, and if so, will they be reimbursing you for the additional cost, if applicable.
Who should be listed as an additional insured? ›
Typically, an additional named insured will be someone close to the policyholder or relevant to their business dealings. For example, a co-owner, vendor, or family member are some common examples of secondary and additional named insured parties.
Who should be listed as an additional interest? ›
Additional interest is a person or entity that has a financial interest in your property but isn't an owner and can't collect a claim payout. If you're renting, your landlord or property manager might want to be included as additional interest so they know if you have coverage.
Your Landlord Won't Cover Damages
For example, if there is a fire in your apartment, and you lose everything, your landlord will not pay to replace your belongings, even if the fire is not your fault. The same goes for many other kinds of emergencies that could befall a renter.
What will you most likely need to insure as a landlord? ›
Core coverages of landlord insurance are property damage, rental income lost due to a property's temporary inhabitability, and liability protection.
Do I need renters insurance if I live with my boyfriend? ›
Does each roommate need renters insurance? Many insurance companies will require roommates to have their own separate renters insurance policy rather than allowing roommates to be on a policy together. If your landlord doesn't mandate renters insurance, you and your roommates aren't required to carry a policy.
What is the most common amount for renters insurance? ›
Renters insurance is relatively inexpensive. According to NerdWallet, the average renters policy costs about $15 per month for up to $30,000 in personal property coverage. That's solid coverage for less than the cost of a few cups of coffee a week.
Why do you think renters insurance is so much cheaper than homeowners insurance? ›
If you're looking into homeowners insurance for the first time, you'll notice that the cost of homeowners insurance may be more expensive than renters insurance. This is because a homeowners policy protects your home's structure and will typically offer more coverage than a renters policy.
When it comes to renters insurance why is it important to know how much your possessions are worth? ›
It's there to protect your personal possessions from unforeseen events like theft, fire, or natural disasters. To ensure that you have the right amount of coverage, it's important to accurately assess the value of your belongings. Knowing how to do this can save you from being underinsured or overpaying for coverage.
Can a landlord require renters insurance in CA? ›
While renters insurance is not required by law in California, some landlords may require it for you to live in their building. It's generally a good idea to have at least some form of coverage as your landlord's insurance is not liable for any damage to your personal property.
Why do landlords require renters insurance in California? ›
Without a renters policy in place, damage or injury from a gathering gone wrong could be your responsibility. Renters insurance can help protect a landlord against tenant negligence. Tenant negligence can take many forms, ranging from a kitchen fire while cooking to water damage from an overflowing tub.
Can a landlord require renters insurance in New York? ›
To be clear, renters insurance isn't legally required in New York — and most tenants won't purchase renters insurance unless a landlord requires it. As a landlord in New York, you can legally enforce the following requirements for renters insurance: Tenants must have renters insurance.
What is the Sutton rule in Oklahoma? ›
The Sutton approach comes from an Oklahoma case where a landlord's insurance carrier sought to pursue a negligent tenant for damage caused to the landlord's property. That court stated “the law considers the tenant as a co-insured of the landlord absent an express agreement between them to the contrary. . .” Sutton v.
Landlords often request that tenants add them as an additional insured to their renters’ insurance policy. It is helpful to understand why this may be requested and the benefits for the tenant as it pertains to adding their landlord as an additional insured on their renters’ insurance policy, which this review discusses in detail.