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 circumstances 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.