Is it legal to give tenants eviction notice to sell insurance?

Question

In my apartment complex I received a notice I was out of compliance with my renter's insurance and I had 3 days to vacate or provide proof. It seemed odd considering I paid for a full year and gave them my information when I moved in. I inquired about it and the PM said that they audited her and she didn't have the info on my insurance. Then she said something that stuck me as odd, that she gave the same eviction threat to everyone. I had been in her office, it was immaculate and well kept and the records were pristine. I got a copy of the insurance but decided not to turn it in, just to see what happens at the 3 day mark. Nothing happened. I asked at day 5 if they needed it and she said she didn't need it anymore. Then I realized that each paper threatening eviction had clear instructions to buy from a specific company if they didn't have proof of insurance. Do private companies pay percentages to these apartment complexes for sign ups? Is it legal to threaten an entire complex just to sell insurance? It rubbed me very wrong.

Marc Winter · Answer

Why you guys being mean to each other?  It's a legit question--can a landlord force a tenant to purchase something for a specific vendor?

NO.

Can a landlord get a benefit from a vendor if they coerce a tenant into buying from the vendor?

Not if the landlord/property manager is licensed.

Now let's play nice with others.

Levi T. · Answer

Get in compliance, quit sniffling, and move on in life. Find better things to do with your time than crowing over someone rubbing you the wrong way. Beyond that, they can do what they want. They can recommend an insurance company all they want... you just need to be in compliance by providing proof. If you rented from me, I would sign you up for insurance and charge you a fee for doing so if you never showed up with proof as instructed, because I have that right under my lease agreements. Best

Joe Splitrock · Answer

I am not sure it is illegal to threaten the complex to sell insurance, but she would probably have difficulty evicting you since you are in compliance with the lease. If she tried to evict you and the judge saw you provided proof of insurance, it could result in her being held responsible for damages. Just because you have to have valid reasons to evict people, like not paying rent or causing damage or disturbance - or some other lease violation. I have never heard of a landlord requiring tenants to have a specific insurance company, usually just renters insurance in general. There could be kick backs for her promoting a specific carrier. Many PM make money on all the services they provide.

It sounds like you handled it fine. Try to keep all correspondence in writing. I would use e-mail.

Nathan Gesner · Answer

If taken to court, I suspect the judge would throw it out. I haven't heard of anyone successfully evicting a tenant for failing to purchase insurance.

There's nothing illegal with the Property Manager recommending a particular insurance company but they should disclose if they are getting any financial benefit from it. If they are licensed by the state, I bet there's a law specifically requiring full disclosure. That may be worth investigating and then reporting them if they broke the law.

Lynn McGeein · Answer

To protect yourself in states where landlord can force compliance, bring in another copy of your current policy and have them provide a signed statement or sign a copy for you to keep.  In Virginia, for example, if I state renter's insurance is required and the cost plus security deposit does not exceed 2 months' rent, I can purchase it if my tenant does not provide proper proof or if tenant lets it lapse (some will turn the paper in, then cancel the policy to get a refund), and charge them for it.

Devin Siebold · Answer

I provided proof of compliance, and extra copies on day 1. It was required by all tenants to move in. The PM said she lost them all and then gave us all 3 days to move out or we could buy the insurance in the pamphlet she gave us, which she kept pressuring us to buy. It wasn't a matter of non-complaince. The entire complex compiled on day 1. It was a matter of being told we were all being evicted as a matter of trying to sell us a second insurance policy in the hope that we would be scared into it or unable to find the proof we already provided.

Levi T. · Answer

They don't have it according to the OP, so he needs send it to them, send it certified vs dropping it off IMO, done and done, go back to enjoying life. He's just being vengeful, that is the point of his post after all.

As for me.. Why evict, when you can just collect. Next level! 😆

Aaron Hunt · Answer

Get in compliance? It sounds like OP provided proof on Day 1.

I’d be annoyed as well to receive dumb threats regarding eviction from unorganized PMs which I would perceive as harassment due to their own stupidity.

And to a landlord like you, I’d likely ignore you or tell you to kick rocks when I see you just to get you to waste time and money to evict me.

Then I’d probably show up in court, document in hand just to waste your time.

Is it legal to give tenants eviction notice to sell insurance?

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