Insurance for rented apartment

by Guest » Mon Apr 30, 2012 12:59 pm
Guest

I intend to rent out my apartment shortly. What kind of insurance protection will I need for that? Can I ask the tenant to buy insurance policy to secure the property? Or will his policy merely cover the contents of his home?

Total Comments: 9

Posted: Tue May 01, 2012 02:14 am Post Subject:

Do you own the apartment, or are you subletting? Will any of your personal property be kept in the rental apartment?

Posted: Tue May 01, 2012 05:36 am Post Subject: Rental insurance

I have the title of the property in my name, and I am the sole owner of the apartment. No, none of my personal belongings will be there.

Posted: Wed May 02, 2012 06:29 am Post Subject:

The tenant can't insure the building for you. I would require the tenant to purchase renters insurance as part of the rental agreement. Renters insurance will cover the tenant's personal property, but it also has liability coverage. Liability includes fire legal liability, so if the renter is legally responsible for accidentally causing a fire damaging the apartment, you will have coverage. Other damage caused by the tenant may not be covered, and any intentional damage won't be covered. Require at least $300,000 liability, if not prohibited by law.

As the owner of the apartment, you still need your own property & liability insurance for the apartment.

Contact a local insurance agent to review your insurance needs, and point out any gaps in your coverage.

Posted: Wed May 02, 2012 01:25 pm Post Subject:

I would require the tenant to purchase renters insurance as part of the rental agreement. Renters insurance will cover the tenant's personal property, but it also has liability coverage. Liability includes fire legal liability, so if the renter is legally responsible for accidentally causing a fire damaging the apartment, you will have coverage.


The two things wrong with this reply are bolded. A renter cannot be forced to buy insurance as part of a rental agreement. And, second, a renter's coverage is coverage for "him" and his property and his negligence, not for "you" and your negligence. You have no direct responsibility for the property of a tenant. (Your negligence in maintaining the structure could make you liable for damage to his property, and that's why you need liability insurance,)

As the owner of the structure, you need coverage for damage to that structure, regardless of who is at fault, and as the owner of the entire property on which the structure is located, you need liability insurance for any damages done to others or their property due to your negligence.

Posted: Wed May 02, 2012 11:13 pm Post Subject:

Max, you are misunderstanding my post. Renters insurance does not cover the landlord's liability, but it does cover fire legal liability for the tenant. I shouldn't have said the phrase, "you have coverage," but the landlord could place a claim against the renters insurance if the tenant negligently causes fire damage to the apartment.

I'm in Oregon, and it's not unusual for landlords to require renters insurance. It may be prohibited by law in some states.

I'm tired of you trying to correct me, requiring me to correct you.

Posted: Thu May 03, 2012 12:54 am Post Subject:

the landlord could place a claim against the renters insurance if the tenant negligently causes fire damage to the apartment.


That's correct. In the same way the landlord can sue the tenant for their negligence. That's the purpose of liability insurance, to protect against our negligence.

Mostly, however, a tenant's policy is to protect the tenant's property. The owner of the building cannot rely on tenants to have insurance to cover the building in the event of a fire, just as a fire might not have anything to do with the tenant or his negligence.

I'm sorry if you think my correcting you on point such as this (yes, you indicated you shouldn't have said "you have coverage") is nitpicking, what would someone take away from your post if it stood as originally written? "Oh, if the tenant has insurance, maybe I don't need it."

Posted: Fri May 04, 2012 02:06 am Post Subject:

Max, I was talking about the advantages of requiring a tenant to have renters insurance. There was nothing in my post leading the op to think renters insurance is a substitute for the property & liability coverage needed for the owners of the property. In fact, you repeated my same advice to make sure the owner has the proper coverage.

There is no way the op reading my post would think not carrying their own insurance is an option. However, after reading your post, the op may think they can't require the tenant to have renters insurance.

Rather than clarifying my post, you negated it, doing a disservice to the op about the sound advice to have the tenant carry renters insurance.

Posted: Fri May 04, 2012 07:02 am Post Subject: Insurance for rented apartment

Max, I was talking about the advantages of requiring a tenant to have renters insurance. There was nothing in my post leading the op to think renters insurance is a substitute for the property & liability coverage needed for the owners of the property. In fact, you repeated my same advice to make sure the owner has the proper coverage.

Posted: Thu May 17, 2012 05:13 am Post Subject: Insurance for rented apartment

This insurance for rented apartment .. this insurance for secure for your life.. Basically you repeated my same advice to make sure the owner has the proper coverage...

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