Pets & Required Renter's Policy

[Susan H.]

In the “you might have similar questions” category: Since my tenants of 3+ years are moving out this summer, I checked with my insurance agent to clarify the rules/restrictions about dogs in rentals. My agent (with Allstate) says their policies exclude any dog with a known bite history, but no specific breed restrictions.

The agent strongly encouraged me to require tenants to carry their own renter’s policy that includes a minimum $200,000 liability. (The property is in Fayetteville, Arkansas; recommended amounts may vary by location.) I checked my current lease and realized I need to edit for more specific (blunt) language to stipulate they must carry renter’s insurance with liability.

And to ensure the policy stays in effect, the agent suggests that I require the tenant to list me as an "additional interested party". With this designation, you will receive documents related to the status of the policy and it's renewal directly from the insurance company. I didn't know this when I rented the SFH to my current (and first) tenants.

Now to my own questions: can I require tenants to have such a policy from day 1 of the lease? Is that even possible, or will they need a signed lease to get the policy? If so, do you suggest they sign before the start date, or should I give them xx days to get the policy? I’m reluctant to accept a tenant with dogs without that policy, but it’s quite possible I’m worrying for no good reason.

I expect everyone on BP to be more experienced than I, so opinions please!

~Susan

[Susan H.]

All: Thanks for the suggestions to have the policy in place, and how to require it. I wasn't aware renters could carry a policy from one residence to another. Good to know!

There are only a few nice SFHs in my town that accept pets, so having a pet-friendly rental gives me an advantage.  I do specify what kinds of pets are accepted (dogs and cats only, no known bite/attack/aggression history, proof of vaccination, etc.). I include a link to the city's animal ordinance and have updated my lease to include a place for them to initial and acknowledge those specific requirements (which include micro-chipping, leash laws, etc.) I require contact info for veterinarian and check with the vet myself. I also require them to provide contact info for emergency caretaker who would not be living there, and I follow up to make sure that person is aware they're listed and approve. 

One other thing I include in the pet section of the application: details on obedience training (and if they don't have it, why not). I learned this from my sister who's a nationally recognized dog trainer (and who's trained me in the ways of Dog). I ask if they have the AKC Canine Good Citizen certification as well. When I was screening tenants the first time I found all but one of the pet owners were excited to talk about their dog's training. There was just one who was vague about his dog's background and refused to let me meet him. 

Kevin suggested I have myself added as an additional insured. I asked my agent about this and he replied "If you were an additional insured, then the policy would extend to you as well. This could make you party to a claim inadvertently."  That was news to me!

Thanks, too, for the recommended amounts of liability, and loss of use riders. I've priced the rental slightly less than similar SFHs, and do not require monthly pet payments (as many LLs in this town do). I point that out when explaining the requirements. My first time around, no applicants had a problem with this. We'll see how this round goes!

~Susan