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Old 09-26-2017, 03:22 PM
 
2 posts, read 1,805 times
Reputation: 10

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I've researched a bit and waiting to hear back from my Insurance Agent but...

Currently moving into a new apartment (in New Jersey) and the lease only stated I need renter's insurance to cover my belongings and liability, which is no big deal I've always had it, now that I've signed, the landlord is asking to be added as an additional insured as well as "Certificate of Liability Insurance including $500,000 general aggregate."

I've only ever had $10,000 worth of coverage and half a million seems a bit extreme. Would love any insight.

Just wondering what my options are as I've come to the conclusion that adding the LL as an additional insured may not be the best choice.
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Old 09-26-2017, 03:31 PM
 
539 posts, read 560,801 times
Reputation: 976
I know nothing about insurances, but, shouldnt the landlord have their own separate insurance? It sounds like they're trying to get cheaper coverage through you, wanting you to insure the physical apartment itself. Also, you, the tenant, accepting liability insurance, wouldnt that suggest you assume liability/responsibility of any possible damage? As in your landlord wouldnt be responsible if something happpens because its YOUR insurance, your paperwork, your signature, your money, not his?

Sounds fishy.
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Old 09-26-2017, 04:38 PM
 
3,461 posts, read 4,650,667 times
Reputation: 4032
Quote:
Originally Posted by mesgws04 View Post
I've researched a bit and waiting to hear back from my Insurance Agent but...

Currently moving into a new apartment (in New Jersey) and the lease only stated I need renter's insurance to cover my belongings and liability, which is no big deal I've always had it, now that I've signed, the landlord is asking to be added as an additional insured as well as "Certificate of Liability Insurance including $500,000 general aggregate."

I've only ever had $10,000 worth of coverage and half a million seems a bit extreme. Would love any insight.

Just wondering what my options are as I've come to the conclusion that adding the LL as an additional insured may not be the best choice.
$10k is just for your contents only. What the LL is asking is for proof of insurance on the liability part which has nothing to do with your contents. It is not that unusual for a LL to ask to be added as an additional insured on a tenant's renters insurance. It just keeps the LL abreast on whether your policy ever expires or gets cancelled while you are living there.

However, $500k for liability on a renters insurance is absurd. Call your insurance agent (the expert) and tell them what your LL is asking from you and see what they advise.
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Old 09-26-2017, 04:45 PM
 
2 posts, read 1,805 times
Reputation: 10
Quote:
Originally Posted by Corn-fused View Post
$10k is just for your contents only. What the LL is asking is for proof of insurance on the liability part which has nothing to do with your contents. It is not that unusual for a LL to ask to be added as an additional insured on a tenant's renters insurance. It just keeps the LL abreast on whether your policy ever expires or gets cancelled while you are living there.

However, $500k for liability on a renters insurance is absurd. Call your insurance agent (the expert) and tell them what your LL is asking from you and see what they advise.
I was thinking the same thing...$500k seems insane. I'm waiting to hear back from my agent to see what he thinks. Thanks for your insight.

All of this came after I signed the lease that didn't state this so I was thrown off.
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Old 09-26-2017, 08:00 PM
 
Location: Phoenix, AZ
6,308 posts, read 4,762,444 times
Reputation: 17903
If your lease only says that you have to have renter's insurance and doesn't specify the liability limit or that he be named as additional insured then you are not obligated to raise your liability limit or name him as additional insured.

He blew it by not specifying his requirements in the lease (assuming you aren't missing anything).

And, yeah, as a retired insurance pro, I also think liability limits of $500,000 for a renter is way over the top.

By the way, I hope you kept a copy of the lease you signed.
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Old 09-26-2017, 09:55 PM
 
Location: Silicon Valley
18,812 posts, read 32,248,860 times
Reputation: 38559
I'd tell him that you're happy with the current lease as-is, and if he wants to negotiate the next lease, you'll be happy to talk it about it at that time.

I just had my management company try to scare all of the tenants into signing a new addendum regarding move-out terms, by attaching some legal-looking document that basically threatened eviction. Fortunately, I studied law and knew that they could not force me to sign new terms to an existing contract, so I wrote an email to the manager saying I was happy with the current lease, and unless their legal department could convince me that I was required by law to sign a new addendum to the lease, I would not be signing it.

Crickets.

Call their bluff. You can do so in a calm manner. Just say you called your lawyer friend who advised you to leave things as is, and to wait until you were renegotiating a new contract before changing any terms. If the landlord insists, you could always say something like, "Well, my lawyer friend said that if you wanted to give us something in return, it might be worth changing the lease. For instance, if you wanted to lower the rent in return for our signing this new addendum. Anyway, let us know and we'll get his advice on any new terms. But, he said we shouldn't give anything away without getting something in return. I'm sure you can understand that." Smile.
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Old 09-26-2017, 10:25 PM
 
Location: Riverside Ca
22,146 posts, read 33,197,505 times
Reputation: 35433
Quote:
Originally Posted by mesgws04 View Post
I've researched a bit and waiting to hear back from my Insurance Agent but...

Currently moving into a new apartment (in New Jersey) and the lease only stated I need renter's insurance to cover my belongings and liability, which is no big deal I've always had it, now that I've signed, the landlord is asking to be added as an additional insured as well as "Certificate of Liability Insurance including $500,000 general aggregate."

I've only ever had $10,000 worth of coverage and half a million seems a bit extreme. Would love any insight.

Just wondering what my options are as I've come to the conclusion that adding the LL as an additional insured may not be the best choice.
I'm additionally insured and n all my tenants policies. It used to be interested party but they do not use that term any longer.
The ONLY thing that having me as additionally insured on a policy accomplishes is if you cancel or your insurance co cancers you I get notified. Then I can send you a perform or quit and start eviction as you would be in reach of the agreement.
In no way does your policy cover me or my property if it's my fault (negligence or accident like a pipe breaking leak roof falls off)
I require a 100,000 dollar policy. 250,000 if you have pets
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Old 09-27-2017, 12:12 AM
 
Location: Phoenix, AZ
6,308 posts, read 4,762,444 times
Reputation: 17903
Quote:
Originally Posted by Electrician4you View Post
I'm additionally insured and n all my tenants policies. It used to be interested party but they do not use that term any longer.
The ONLY thing that having me as additionally insured on a policy accomplishes is if you cancel or your insurance co cancers you I get notified.
No, that's not the ONLY thing that it does. Being additional insured for liability protects you if the tenant gets sued and you get named as a co-defendant just for owning the property. It allows you to be defended by the tenant's insurance company (instead of using your own) and any settlement made by the tenant's insurance company will include your name in the claim release form.

Quote:
Originally Posted by Electrician4you View Post
Then I can send you a perform or quit and start eviction as you would be in reach of the agreement.
I think you mean "breach" of the agreement.

Better check your state's landlord tenant statutes about that. I seem to recall that some states won't allow breach of the insurance requirement as cause to evict.
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Old 09-27-2017, 11:49 AM
 
Location: Watervliet, NY
6,916 posts, read 3,888,494 times
Reputation: 12875
I had that clause in my own lease. That was one of several my landlord does not enforce (the agency he uses to find tenants wrote the lease, not him).

Talk to your insurance company. Mine, Travelers, does not do "additional insured" on their renter's policies.
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Old 09-27-2017, 03:12 PM
 
Location: North Idaho
32,480 posts, read 47,405,393 times
Reputation: 77676
OP, you have neglected to inform us about your dog. That's when the big liability limits are required, when the tenant has a dog.

Liability insurance in that amount should not add much to the cost of your insurance. Renters insurance is pretty cheap.
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