What to do?? They won't get me copies of renter's insurance

[Jennifer Rysdam]

It's in my lease that they have to have renter's insurance. I have asked for copies and they just aren't getting them to me. Do I send a final notice that they need to get it to me or get evicted for lease violation or just let it go? I would think I'm covered because my lease requires it and they signed it, but I don't want to get sued if someone falls and gets hurt. Do you require copies? Not sure what to do here. Thanks!

[Account Closed]

My landlord requires renters insurance on a take it or leave it basis. Either I supplied a copy of the policy (emailed by the insurance company) or my lease didn't get renewed.

[Nathan Gesner]

@Jennifer Rysdam this is exactly why many of us do not mandate renter insurance. If they fail to comply, are you going to kick them out over a $15 policy? The only possible benefit to you is protection against a personal injury claim but your insurance already covers that. Do you know what the odds are of a tenant suing you AND winning? I have nine years experience as a property manager and network with thousands of others around the country. I've never heard of a Landlord losing a lawsuit that couldn't be covered by their own insurance but would have been covered by the Tenant's insurance. Someone correct me if I'm wrong but I don't think it's possible.

The amount of time spent trying to enforce renters insurance is ridiculous and not scalable. Highly recommend it. Explain what happens if they fail to use it. Then let them make their own choice.

If you are concerned about protecting yourself or your investments, get a good umbrella policy.

[Account Closed]

@Nathan G.

Does an insurance company ever deny a renter coverage? If so, it might be an additional screening tool. On the other hand, if the insurance company rubber stamps all applications (once the premium is paid), then renters insurance doesn't provide any additional insight about the renter's character.

Homeowners insurance can be denied (or made prohibitively expensive) if the homeowner files too many claims or fails to fix certain issues (mostly safety related).

[Steve DellaPelle]

@Jennifer Rysdam I work for a PM company and we require Renters Insurance per our lease agreement. We track each resident's policy and if our records aren't up to date then we reach out for the updated policy. If they do not respond after 2-3 times of reaching out then we send a more concerning email/letter that this is the final notice before further action is required. If they still do not respond then you should be able to send a notice to quit and file an eviction (following your state laws/regulations).

[Steve DellaPelle]

@Jennifer Rysdam In addition to my comment, no renter will want to go through an eviction over a policy that costs $10-$12/month. It is a clear violation of the lease, you just need to be willing to enforce it like any other lease clause you have.

[Aaron Hunt]

You collect $15/month up front for the lease itself and say you’re buying on their behalf. Done.

It’s what I have done on all my properties.

That’s of course, in addition to my $500k liability coverage per door, and multi-million $ umbrella policy on top of that. Suddenly slip and falls don’t seem quite as scary.

[Brad E.]

@Jennifer Rysdam

Maybe you have already tried this but you could try to find out the company they say they have it through and get the insurance company to verify it.  I've had to do this before on contractors saying they have coverage.

[Steve DellaPelle]

@Jennifer Rysdam Also...if you require renters insurance then you should not let the tenant move in unless they provide proof of coverage prior to move in. This is how we do it and it ensures that every tenant is covered for at least a year. We also require that we are added on as an additional insured or interested party so that we receive notice of non-payment or any lapse in coverage.

[Joe Splitrock]

@Jennifer Rysdam I require renters insurance in my lease but I do not require proof of renters insurance. As @Nathan Gesner pointed out, it is time consuming to collect proof and would you really evict over a $15 policy that only really protects their belongings? Of course they could show proof, then just cancel it next week and you would never know.

Just to be clear, renters insurance will not protect a landlord from liability if someone falls and get's hurt. If the cause of the fall is due to a safety deficiency at the property, then you are on the hook regardless. You need liability insurance.

[Thomas S.]

If you do not intend to enforce a article of your lease remove it. Not enforcing a article of a contract will make it null and void. If you do not respect the contract enough to enforce it don't expect your tenant to respect it.

[Jill F.]

I don't require renter's insurance, but if I did, I'd 'discount' rent $15/month with proof of insurance, and if tenants don't want to get the insurance they could just pay me the extra $15/month.

[Jen R.]

I would send a notice of the lease violation and be prepared to take the next steps if they do not comply.  If they are not cooperative on something as simple as obtaining renter’s insurance, they are just going to cause more headaches down the road. Or worse, maybe there’s a reason they are uninsurable. Renter’s insurance does much more than simply protect their belongings - it protects you and your property if the tenants cause damage (e.g. if tenant starts a cooking fire and burns down the kitchen, your homeowner’s insurance likely will not cover it - it will be on your tenant and their renter’s insurance). 

[Leo Rodriguez]

@Jennifer Rysdam It's stated in the lease that they need to have renters insurance and they signed it. If you have home insurance you don't have to force them to get it, your home insurance covers you for whatever happens. If someone breaks in and they get robbed, they can't blame or force you to pay for their things because they signed the lease. That's what renters insurance is for.

Hope that helps!

[Jeremy A.]

i require proof to get keys at walk thru.

i put in lease they must maintain or face consequences financially legally and  or eviction.

 they must keep 100k/20kpersonal

[Luciano A.]

@Jennifer Rysdam

Renters insurance covers more than just liability. If a person trashed your property and or leaves it in pig style after moving you can file under their policy.

Another benefit that most landlords don’t realize until it happens to them is that renters insurance protects from property damage caused by your tenant. An example that can be costly is a suicide inside the property. If you have high deductible it can really cause a dent in your cash flow.

As others said if it’s in your lease be aggressive to enforce it otherwise take it out. Once something happens it’s to late. Just bc they signed lease doesn’t mean you won’t be left holding the bag.

Also best to be listed as either additional insured or certificate holder so this way you get renewal sent directly to you from insurance company.

[Frank Chin]

In NYC where I am, local code prohibit enforcement of renter insurance requirements. None the less, I use a service that prepare leases, and they have a nice section on renter's insurance, describes it's benefits, and people chose to opt in, in the checkboxes provided. 

When I first required it (didn't know it was unenforceable in NYC), writing it into the lease, I did have a tenant, went out and bought it, showed me the certificate of insurance that I asked for as proof, then cancelled it. I later learned I should have included me as additional insured so I'll be notified. He was the only one of two threatening to sue me for damages in all the years caused by his negligence. I pointed out it's covered under renter's insurance, if he chose to cancel it for $150.00. the annual cost, he's out of luck. I threatened to sue him for damages caused by leaving his windows open in a rainstorm, though my landlord insurance actually covers interior damages. The other tenant got after me for a burglary costing him $1,500 in damages. I waived one months rent, and asked him to leave.

 But having be renting to tenants for 40 years, I agree with @Nathan Gesner that to get after tenants for something worth $15/month is not worth it. I go through it when I sign the initial lease stressing that for $15.00/month, you can prevent yourself from being homeless with only the shirt on your back. Putting it that way, many renters agree to get it.

[Nathan Gesner]

@Steve DellaPelle it's time-consuming to track and enforce. I don't know how many rentals you have but if you had 300 like I do, the amount of time spent ensuring they sign up for insurance, tracking compliance, and enforcing violations could be a full-time position.

And you're right that a tenant normally won't want to be evicted over a $15 charge. But I also don't know many property managers that think it's worth the time, cost, and trouble of evicting a tenant if they are otherwise good in every other respect. Again, you're evicting someone on the extremely rare chance that their renter insurance policy will somehow protect the owner from a loss. The cost of that eviction and turnover is far more likely to exceed the benefit of kicking them out and finding a tenant that complies with your requirement.

[Nathan Gesner]

@Luciano A. I don't think renters insurance covers what you claim.

If the tenant accidentally causes damage (tub overflows, stove catches fire, etc.) then it may be covered. If the tenant knocks holes in the wall, breaks windows, or allows their dog to crap all over the carpet then it won't be covered. I don't know of any insurance policy that will cover intentional destruction by a tenant.

As for death, renters insurance covers the accidental death of others. It would not cover the damage caused by intentionally killing someone else or committing suicide. In fact, the insurance policy belongs to the tenant so who would file the claim after the tenant is dead?

[Steve DellaPelle]

@Nathan Gesner Totally agree, I am not sure if the process is worthwhile but that is how my company operates and this is the procedure they follow. We manage 204 total apartments and we check in with residents monthly to ensure their policy is up to date.

Residents will reply back 99.9% of the time with their updated policy. We have never (knock on wood) needed to use the attorneys for further action.

Even if we didn't require it, most residents already have a policy since it's a great idea at such a low cost.

[Luciano A.]

@Nathan G.

If landlord is listed as additional insured on policy it will be covered. I personal have had experience in this and have had a few other investors that gone through it. Renters insurance covered the cost. Tenant was the one who committed suicide.