making tenants provide insurance - Posted by d d

Posted by dd on August 12, 2003 at 17:28:45:

I was thinking about something in the lease like “It is manditory that tenant has in effect an Insurance policy covering the interior of the condominium, including liability. Tenant agrees to hold harmlees and indemnify landlord from any incedences occourring with the property”.

making tenants provide insurance - Posted by d d

Posted by d d on August 08, 2003 at 17:36:39:

I have several units in a smaller (under 20 units) condominium building. I had a fire in one unit in October 2001 and another in Aprol 2002. Both were caused by the tenants. My insurance company did not renew my policy for the inside of the unit. I have been unable to find replacement coverage. It was suggested by an insuarance agent that I make it manditory that the tenants maintain an insurance policy on the unit including liability. What do you think and what kind of verbage should I have in my rental agreement to protect myself, particularly only the liability issue?

Re: making tenants provide insurance - Posted by Frank Chin

Posted by Frank Chin on August 09, 2003 at 07:51:01:

Hi d d:

If you search the “Main Board” archives under “Tenant Insurance”, you’ll find a number of threads on the subject.

To answer your question “Yes, I do require my tenants to have tenant insurance - its part of the lease.”

The problem is enforcing the requirement. There’s nothing to prevent them from cancelling it and obtaining a refund. Spoke to my insurance agent about adding me as a “additinal insured”, but was told that “I don’t have an insurable interest”. The purpose here is for me to get notification in the case of cancellation.

I had a tenant who signed a lease requiring the insurance - and he showed me a binder which he never made payment on. Some time later, he left a window open to go to work. A heavy rainstorm ruined some of his belongings, my carpets, and buckled the wooden floor boards.

He wanted me to pay for his belongings. I found out about the insurance problem after I told him to file a claim and he said he never paid for it.

I threaten to evict him as he violated his lease. He backed down on my paying for his belongings. I had to file a claim against my insurance for the damages.

While its true that the interior of the condo and appliance is the landlord’s property, you have to sue the tenant under the liability part of his policy.

The advantage of the tenant policy is tenants often feel the landlord is reponsible for damage to his property in the case of “fire, theft etc”. This may not necessarily be so if its the tenants fault.

The other advantage I mentioned in my earlier threads is that you don’t have to file claims against the landlord policy as it may result in the landlord policy being dropped.

Frank Chin