Not all insurance is the same and it can be very confusing. We recommend you that tenants talk with an insurance agent; a professional who can guide them to the right insurance for their needs.
Provident Property Management now requires (as of September 2017) that all tenants carry renter’s liability insurance. This insurance protects the property owner from damage that may occur to their property during the tenancy. You can read more about it below. This is not the same as “renter’s insurance”. Renter’s insurance covers the renter’s personal property in case of damage or disaster. You can also read more about that below. The tricky part is that some “renter’s insurance” may include in the policy “renter’s liability insurance”.
Provident Property Management strongly recommends that tenants purchase their own renter’s insurance to protect their own personal belongings, but we DO NOT REQUIRE the tenant to have renter’s insurance. However, we DO REQUIRE the tenant to have adequate “renter’s liability insurance” as described below. And if you don’t have it and provide us with proof of coverage, we may purchase it for you and charge you monthly for the expense.
LANDLORD REQUIRED RENTER LIABILITY INSURANCE (LRRL) – The Tenant is required to maintain renter’s liability insurance and provide insurance coverage that includes a minimum of $100,000 Limit of Liability for Tenant’s legal liability for damage to the Landlord’s property for no less than the following causes of loss: fire, smoke, explosion, backup or overflow of sewer, drain or sump, and water damage (“Required Insurance”, “LRRL”).
Tenant is required to furnish Landlord with evidence of Required Insurance prior to occupancy of the Property and at the time of each lease renewal period. If at any time Tenant does not have Required Insurance, Tenant is in breach of the Agreement and Landlord shall have, in addition to any other rights under the Agreement, the right but not the obligation to purchase LRRL coverage and seek reimbursement from the Lessee for all costs and expenses associated with such purchase.
Tenant may obtain Required Insurance from an insurance agent or insurance company of Tenant’s choice. If Tenant furnishes evidence of such insurance and maintains the insurance for the duration of the Agreement, then nothing more is required. If Tenant does not maintain LRRL, the insurance requirement of this Agreement may be satisfied by Landlord, who may schedule the Tenant’s unit for coverage under the Landlord’s Required Resident Liability insurance policy (“LRRL”). The coverage provided under the LRRL will provide the Required Insurance coverage listed above. An amount equal to the total cost to the Landlord for the LRRL coverage shall be charged to the Tenant by the Landlord. Some important points of this coverage, which the Tenant should understand are:
- LRRL is designed to fulfill the insurance requirement of the Lease Agreement.
- The Landlord is the Insured under the LRRL.
- The Tenant is not the insured under the LRRL policy.
- LRRL coverage is not personal liability insurance or renter’s insurance. Landlord makes no representation that LRRL covers the Lessee’s additional living expenses or liability arising out of bodily injury or property damage to any third party. If Tenant requires any of these coverages, then Tenant should contact an insurance agent or insurance company of Tenant’s choice.
- Coverage under the LRRL policy may be more expensive than the cost of Required Insurance obtainable by Tenant elsewhere. At any time, Tenant may contact an agent of their choice for insurance options to satisfy the Required Insurance under this Agreement.
- Licensed insurance agents may receive a commission on the LRRL policy.
Scheduling under the LRRL policy is not mandatory and Tenant may obtain the required insurance from an insurance agent or company of Tenant’s choice at any time. Coverage under the Landlord’s LRRL policy will be terminated by the Landlord upon receiving Tenant’s proof of insurance.
The LRRL mentioned above is not the same as renter’s insurance.
RENTER’S INSURANCE – Landlord encourages Tenant to obtain Renter’s Insurance to cover for losses to Tenant’s personal property or injuries due to theft, fire, water damage, pipe leaks and the like. Tenant understands that neither the Landlord’s insurance nor the LRRL mentioned above covers any of the Tenant’s property, personal belongings.
Generally, except under special circumstances, the Landlord is not legally responsible for loss to the resident’s personal property, possessions or personal liability, and the Landlord’s insurance will not covers such losses or damages.
If damages or injure to the Landlord’s property is caused by Tenant(s), Tenant’s guest(s) or child (children), the Landlord’s insurance company may have the right to attempt to recover from the Tenant(s) payments made under Landlord’s policy.
The following is a non-inclusive list of examples of possible costly misfortunes that, except for special circumstances, you could be held legally responsible for:
- Your babysitter injures herself in your unit.
- Your defective electrical extension cord starts a fire which causes damage to the building and your personal property and/or the personal property of others.
- A friend is injured while helping you slide out your refrigerator so you can clean behind it.
- While fixing your television set, a store delivery person slips on the floor you have just waxed.
- Your locked car is broken into and your personal property or that of a friend is stolen.
- A burglar breaks your front door lock and steals your valuables or personal property.
If you desire to protect yourself and your property against loss, damage, or liability, the Landlord strongly recommends you consult with your insurance agent and obtain appropriate coverage for fire, theft, liability, workers’ compensation and other perils. The cost is reasonable considering the peace of mind, the protection, and the financial recovery of loss that you get if you are adequately protected by insurance.
Tenant shall comply with any requirement imposed on Tenant by Landlord’s insurer to avoid (i) an increase in insurance premium (or Tenant shall pay for the increase in premium); or (ii) loss of insurance.
LANDLORD LIABILITY – The Landlord is not liable to any resident, tenant, guest or occupant for personal injury or damage or loss of personal property from any cause, including but not limited to: fire, smoke, rain, flood, water, pipe leaks, hail, ice, snow, lightning, wind, explosions, earthquake, interruption of utilities, theft, or vandalism unless otherwise required by law.
Tenant’s or guest’s personal property and vehicles are not insured by Landlord, manager or, if applicable, HOA, against loss or damage due to fire, theft, vandalism rain, water, criminal or negligent acts of others, or any other cause. Tenant is advised to carry Tenant’s own insurance (renter’s insurance) to protect Tenant from any such loss or damage.
Click here to download “Tenant Insurance – What You Need to Know”