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I've been renting for a few years and while I'm well aware that I am required to carry renter's insurance, my new lease renewal has a new twist... Rather than allow renters to find and use their own insurance carrier, the management company is going to insist we use their carrier to insure the building with $100k of coverage. This coverage does not include personal belongings.
I guessing NO! Only Insurance you need is Rental & That ONLY covers you items. Not the Building! Contact a Local Lawyer that deals in Rentals or your local Tenants Board.
I guessing NO! Only Insurance you need is Rental & That ONLY covers you items. Not the Building! Contact a Local Lawyer that deals in Rentals or your local Tenants Board.
You are completely wrong. Please stay to topics you understand.
I've been renting for a few years and while I'm well aware that I am required to carry renter's insurance, my new lease renewal has a new twist... Rather than allow renters to find and use their own insurance carrier, the management company is going to insist we use their carrier to insure the building with $100k of coverage. This coverage does not include personal belongings.
Is this legal?
No. It is not legal to mandate a specific carrier or policy in Illinois. They can, however, mandate coverage limits.
As long as the insurance company is legally registered in the state, they can't refuse to accept any insurance company but they can mandate minimum insurance coverage.
I guessing NO! Only Insurance you need is Rental & That ONLY covers you items. Not the Building! Contact a Local Lawyer that deals in Rentals or your local Tenants Board.
Sort of. It covers the building if you cause colossal damage. So, if you fall asleep while food is on the stove and start a fire, your renters insurance will pay for the damage you cause the unit.
Now, if your upstairs neighbor passes out with the tub running and it floods your unit wrecking your stuff and the ceilings and the walls, your rental insurance will pay for your stuff and try and collect from your neighbor's rental policy, but they're not getting involved in paying to fix the ceiling as that's the landlord's responsibility and the LL/His Insurer would be responsible for subrogating HIS loss.
Many of the comments above are opinions and only that. Yes, the land lord can, or no, the landlord cant.
I find it strange that a landlord would try to require only one insurance company, but hey, lots of contracts have weird things in them so its not too crazy.
This is what it boils down to:
Your state law either has a statement on this subject or it does not. You need to research your state law. If it does have a section on the ability for a landlord to require rental tenants to buy insurance from specified company, then that law needs to be followed by all parties involved as it is written.
If this law doesn't exist, then ya, your landlord can do this to you even if it is distasteful. I find it strange and possibly unethical in my opinion, but America is free and we are allowed to put things like this in a contract. You are also free to not agree with this and refuse to sign a new contract with this statement in it. I had a landlord try to raise the rent on me almost 30% after the first year. I refused to the change in the contract and moved out. If you don't sign a new contract, you and the landlord can discuss the terms and possibly come to an agreement. If no agreement, you are free to move out and the landlord is free to ask you to move out at the end of your current contract with sufficient notice provided.
You may want to consider possible landlord motives... My first assumption is that being a landlord myself (who doesn't require renters to purchase insurance BTW) is that in situations where tenants are required to purchase insurance, they almost never remain paid up on it and the coverage laps. Honestly, there is no benefit to a tenant to pay for insurance for someone else's property under any circumstance. All the benefit is to the landlord to have their property insurance paid by someone else assuming this insurance covers more than your personal property and included building coverage. Other than that, i think this may be the landlord's key benefit: they are likely working with a company that will provide them monthly reports on all units as to who is or is not paid up on insurance so the landlord can verify insurance is present. Maybe the landlord gets some kind of kickback also.... once again, just my speculation.
they are likely working with a company that will provide them monthly reports on all units as to who is or is not paid up on insurance so the landlord can verify insurance is present. Maybe the landlord gets some kind of kickback also.... once again, just my speculation.
I don’t have a whole lot of experience with renters policies, but those that I have had always had the landlord named on them, and I assume if I were to cancel or let the policy lapse, the landlord would be notified.
But you are totally correct, if you don't like the landlord’s terms, nobody is making you stay.
Many of the comments above are opinions and only that. Yes, the land lord can, or no, the landlord cant.
I find it strange that a landlord would try to require only one insurance company, but hey, lots of contracts have weird things in them so its not too crazy.
This is what it boils down to:
Your state law either has a statement on this subject or it does not. You need to research your state law. If it does have a section on the ability for a landlord to require rental tenants to buy insurance from specified company, then that law needs to be followed by all parties involved as it is written.
If this law doesn't exist, then ya, your landlord can do this to you even if it is distasteful. I find it strange and possibly unethical in my opinion, but America is free and we are allowed to put things like this in a contract. You are also free to not agree with this and refuse to sign a new contract with this statement in it. I had a landlord try to raise the rent on me almost 30% after the first year. I refused to the change in the contract and moved out. If you don't sign a new contract, you and the landlord can discuss the terms and possibly come to an agreement. If no agreement, you are free to move out and the landlord is free to ask you to move out at the end of your current contract with sufficient notice provided.
You may want to consider possible landlord motives... My first assumption is that being a landlord myself (who doesn't require renters to purchase insurance BTW) is that in situations where tenants are required to purchase insurance, they almost never remain paid up on it and the coverage laps. Honestly, there is no benefit to a tenant to pay for insurance for someone else's property under any circumstance. All the benefit is to the landlord to have their property insurance paid by someone else assuming this insurance covers more than your personal property and included building coverage. Other than that, i think this may be the landlord's key benefit: they are likely working with a company that will provide them monthly reports on all units as to who is or is not paid up on insurance so the landlord can verify insurance is present. Maybe the landlord gets some kind of kickback also.... once again, just my speculation.
Close, but you missed a key point.
Residential leases fall under what is considered contracts of adhesion, where one party has more bargaining power than the other. Courts are pretty quick to strike down all or parts of these contracts when they (or a provision within them) in cases where their is anything unfair or unethical. That is what we are looking at right here, probably.
For my part, I don't see courts enforcing a provision like this that restricts a tenant's economic right to price shop and find the best possible deal, but I'd like to see the actual wording of the clause.
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