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Location: The Chatterdome in La La Land, CaliFUNia
39,031 posts, read 23,018,776 times
Reputation: 36027
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Hi. I recently moved into an apartment complex that requires tenants to carry renter's insurance, which is new for me as my previous complex did not have this as a requirement. As per the management's specific instructions, I am to list them as "additional insured." Not understanding this concept, I went ahead and complied with their requirement. An issue came up today that required me to contact my insurance company where the agent was advising me NOT to list my manager as "additional insured" as that designation is meant for roommates, spouses, family, etc. She recommended I list them as "interested party" so they can receive notifications of policy changes, such as cancellations. I did some research and I am not comfortable having them on my policy as I don't want to get screwed over by this management company in the event of a dispute or if I need to file a claim as it presents a conflict of interest for the insurance company. Am I required by law to list them as "additional insured" because it is part of the leasing agreement? What rights do I have as I'm the one paying on this policy and not the management company? I'm in California if that helps.
what your gonna pay for them to get share of the insurance claim for your things ? DO NOT do that .. yes they need to know you have the rental insurance but NO they have no reason to be listed on it as additional insured .. they have their own insurance .. and unless they are gonna list you on that as a additional insured person .. well you see how much sense that makes in a rental deal?
Location: The Chatterdome in La La Land, CaliFUNia
39,031 posts, read 23,018,776 times
Reputation: 36027
Yeah ... My concern about switching them from "additional insured" to "interested party" is that they will get notified of the change by my insurance company. I just wished that I wasn't under so much pressure when I was moving that I had a chance to fully research this stuff before listing them as "additional insured" as I'm already having serious issues in my unit that they are somewhat addressing. If they question me about the change, I have to figure out what to say to them.
"Interested Party" is a way for the insurance company to save lots of money. Insurance companies always recommend "Interested Party" while a landlord attorny will recomend "Additional Insured". To the renter, one does not provide any additional insurance protections than the other. When it comes down to it, its really all about if the the landlord or the insurance company is interest are best serve, as it really makes little difference to the tenant.
I believe the question here is, are they allowed by law to require such a thing? If not, then the apt management would not have the power to force you to carry the insurance in that manner.
I can see requiring renters to have insurance, however not so sure about this additionally insured issue. I would check LL/Tenant law to see if that requirement is legal in California. It would be a part of your liability coverage, such as in the instance of your neglect or abuse resulting in damage to their property. Their own insurance company would have the ability to subrogate the claim to your insurance company to pay for repairs.
The landlord won't receive any of the money for loss of your insured items. What he receives is the repair money if you do severe damage to the property and he is covered by your liability if your dog bites someone or you do something to get yourself and the landlord sued. (or actually, that money is paid to the landlord's own insurance company)
I would guess that if your lease says you must have insurance with the landlord as additional insured, then that is what you have to have. If you don't like it, try renegotiating at lease renewal.
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