Renter's Insurance Liability and "additional insured"

[Anna Milligan]

Our insurance guy is telling us that we should have a requirement in our lease that the renter have renter’s insurance for $500k liability. He said most policies are at $300k, but it’s only an extra $10/yr to bump up to $500k.  He also said to include in the lease that the landlord must be listed as an “additional insured” on the renter’s policy. If the renter does not pay their insurance bill, then we will get notification. 

Has anyone done this?  I've heard of landlords requiring renters insurance, but I've never heard of requiring the Landlord to be an "additional insured" on the policy.  That seems wacky, but I'm new to this and I know nothing.

Thanks!