These days, it is very common for Property Managers to be listed as an Additional Insured on a landlord policy. Close. My landlord is requiring that I obtain renters insurance and add them as an additional insured for me to renew for another year. Additional Insured Endorsement Should Cover a Tenant's "Operations" A recent federal case shows that, when arranging additional insured (AI) coverage for a landlord, it would be a good idea to obtain an endorsement covering liabilities arising out of the tenant's "operations" in the leased space. City v. Super normal. New comments cannot be posted and votes cannot be cast, Press J to jump to the feed. This gives the tenant’s policy priority in paying for claims in which the tenant is at least partially responsible. Or if I mess up and cause damages, can he bring a claim against me if we share insurance. Often, landlords will ask that you purchase general liability, often with a specific limit. One of the most common reasons for providing additional insured coverage is a contractual requirement. Additional interest is what they should be, not an additional insured. Hey! Reason for Coverage . What happens if something he is liable for causes say my apartment to burn down? Covering your landlord as an additional insured. Just tell your agent they need to be added for "section 2 coverage" and they'll know what to do. The landlord should just need a certificate of insurance, and they are listed as a certificate holder. This is his stated reason for asking this: "Additional insured is necessary for me as the condo owner to have the access to the liability on the policy so that if a claim is presented against me and it really is the result of the negligence of a tenant- that I have access to the liability on the renters policy. But putting that aside for a moment, let’s take a look at some of the impacts of no longer being able to use a lease that requires additional insured on a tenant’s insurance policy. First ever post, not sure if it fits here but worth a try. By being additional insured, the landlord is given protection similar to if he were a named insured on your renters policy. That means if your landlord somehow talks you into listing him as additional insured instead of additional interest, you may be out of luck if something goes legally astray. Endorsements covering landlords as additional insureds typically exclude accidents that occur after you cease to be a tenant in the premises. Additional Insured is generally a liability term that means that your liability insurance will also defend and indemnify the landlord in case they're sued for something that happens … provide for such additional insured. Isn’t that the same thing? They don't want to receive money for your personal property. It shouldn't increase the premium so there isn't really a downside to it. A landlord will generally require a lessee at the minimum to have a premise general liability policy & often require to be listed as additional insured. Additional Insured is out of Luck When Named Insured Does Nothing Wrong. They're asking for something that's usual and customary for someone buying commercial coverage. That's not what this is. We’ve written at length on additional interest vs. additional insured. Insurance requirements can be lengthy at many different times during the course of a lease. Edit: make sure it's an additional insured for liability only, he doesn't have insurable interest in your belongings, Okay, but even in this case. The way they can do this is to be listed as additional insured/additional interest. In other words, the tenant isn't covered against liability caused by the landlord's acts. This means that any driver not listed is not covered. Basically you would have your policy provide protection to the landlord for their protection. Usually premium isn’t even that much in difference. Here is a real basic example, Say I … Your landlord wants to make sure that you keep the required insurance. City v. 3. It is important to note that ‘Additional Insured’ and ‘Additional Interest’ are NOT the same thing. Here is a real basic example, Say I come over to your house and your dog attacks me. When a landlord is listed as an Additional Insured on the Tenants Renters insurance policy, the landlord then has the right to file claim directly with the insurance carrier. I read some previous posts here about the same issue and it seems that there are some mixed opinions on this, but the prevailing opinion is that it is a bad idea. What that does is it covers the landlord from your liability to a third party. New comments cannot be posted and votes cannot be cast, Looks like you're using new Reddit on an old browser. To start with, we believe that additional insured status is not what a landlord wants. An additional insured is an entity who is not the policyholder, but is entitled to some of the benefits of the policy because of a direct business relationship to the named insured. The policy added the landlord as an additional insured, but “only with respect to liability arising out of the ownership, maintenance or use of that part of the premises leased to [Capital One] and shown in the Schedule.” The lease defined the demised premises to … They want me to have these words put on my policy: "ABC Commercial Management Agent for Owners is included as additional insured. Waive right of subrogation as respects workers comp" and the landlord company wants … I thought they just needed to be listed as an additional interest to be notified and not an additional insured? The mistake lies with the landlord, not the tenant. The standard additional insured endorsement commonly issued to landlords (ISO CG2011) has recently … Therefore, most landlords can expect to pay roughly $1,481 a year for landlord insurance. How to add your Property Manager as an Additional Insured. By being additional insured, the landlord is given protection similar to if he were a named insured on your renters policy. posted by dis_integration at 10:49 AM on June 11, 2017 Many people ask why they should list their landlord as additional insured on their renters insurance policies. For instance, many businesses satisfy lease requirements by insuring their landlord under their liability policy using a standard ISO additional insured endorsement. With respect to the insurance afforded to these additional insureds, the following is added to Section III – Limits Of Insurance: If coverage provided to the additional insured is required by a contract or agreement, the most we will pay on behalf of the additional insured is the amount of insurance: 1. If anyone, from a landlord to a contractor or even a roommate, asks to be added to your renters insurance as additional insured, make sure you fully understand what that means under the terms of your own policy. Both entities present as one, and the one doing the actual work must protect the one who is not doing the actual work but is bringing them in with their insurance policy. They don't want to be listed as just an interested party, but an actual insured party which google tells me are separate things. The only reason the landlord should be listed as 'additional insured' is if one of the following conditions is in play: You're roommates or the landlord is live-in. I have never been asked to do this. No coverage would be afforded anyway right? Being listed an as additional insured means they would be afforded the same coverages as the policy holder. There is a place for insured (me) and mortgagee/additional interest. Make sure it is only for general liability. In the realm of additional insured endorsement coverage cases in the landlord-tenant context, litigants often refer to rival lines of cases—Harrah’s Atl. Press question mark to learn the rest of the keyboard shortcuts. The coverage afforded to an additional insured is limited to liability caused by the named insured. Has any adjusters or agents had a problem when they listed the landlord as an additional insured in a claims situation? The landlord, though an additional insured on its tenant’s policy, has coverage only if the claim is caused by its tenant’s acts or omissions. My landlord requires us to prove we have coverage. There are even some options to add “Blanket Additional Insureds,” which cover any Additional Insured if required in a contract with the Named Insured. The risk transfer is different with the different coverage form. The standard ISO limits coverage to only those people or groups specifically listed in the endorsement as mentioned. In the lease there is a clause in the insurance portion that states: "Tenant shall obtain liability insurance, in an amount not less than $50,000.00, naming Landlord, and, if applicable, Property Manager as additional insured for injury or damage to, or upon, the Premises during the term of this agreement or any … Commercial Tenant Insurance Requirements If you are renting a commercial building for business use, chances are that your landlord is going to require you to get an insurance policy before allowing you to sign the lease. 1. That doesn't mean that your insurance is covering them for anything they are liable for, just for your action/inaction. 13358 The California Court of Appeal, Second Appellate District, affirmed Gemini Insurance Co.’s motion for summary judgment in a lawsuit brought by Gemini seeking reimbursement of a paid property damage … There's often confusion around the definitions of additional insured, named driver, and listed drivers on car insurance policies. The only problem is one of the landlord's demands is that he be listed as an "additional insured." It's and host of other claims. My apartment complex is getting ready to enroll me in their liability insurance if I do not get the landlord added as additional insured. My landlord is requiring that I obtain renters insurance and add them as an additional insured for me to renew for another year. You are going to be liable for my medical bills because it was your dog in your home that hurt me. To protect your company against these claims, you should purchase a liability policy. The higher cost is because insurers are taking on additional risk for landlord insurance because of the presence of renters. I know some of my carriers allowed landlords to be added as additional insured liability only. As an additional insured, the landlord is not given the same full coverage as the tenant. The landlord wants to be an additional insured on the policy, who will be covered for any liability it incurs due to the acts of the tenant. Ultimately the insurance company will make the decision if they will be added as an additional insured or not based on that companies definitions. Landlord as Additional Insured. Few insurers want to assume the liability of apartment complex owners and managers, but they often issue Additional Interest endorsements that include notice of cancellation. Renter’s insurance - add landlord as “additional insured”? So, if the landlord is an additional insured on its tenant’s policy, the words, “Your acts or omissions” means the acts or omissions of the tenant. Covering your landlord as an additional insured. Short Story: Landlords, clients, and business partners will want anywhere between a 10-30 day notice if your insurance carrier intends to cancel the policy before the designated expiration date. The additional insured coverage would provide coverage to your landlord … That’s all well and good as far as damages … Otherwise, the landlord … Is there any way to keep the coverage I just got (without him listed - got a discount because I also have car insurance through the company) without naming him as he wishes? Which means they would go after the renters insurance company, and I am on the renters insurance policy. That’s all well and good as far as damages to other people go, but there’s a serious problem here. When we sent an email questioning. Now your stuck with a claim under your Landlord policy, for something you were not responsible for. What does this mean for us? Wouldn't this mean they themselves get coverage from our policy like they live in the home? As the landlord they need to be buying their own coverage. Question: We have an insured written on an HO4 renters policy. 6 months ago. Additional Insured: A type of status associated with general liability insurance policies that provides coverage to other individuals/groups that were not initially named. I am about to sign my first lease solo and I found a nice apartment. As an Additional Insured, you can file the claim under Tenant #1 Renters insurance since they were the responsible for the claim. Renter’s insurance - add landlord as “additional insured”? The landlord additional insured endorsement, along with the lease indemnity agreement, is designed to protect the building owner from liability claims that result from the tenant’s activities. Super common. It just means they get alerted if the policy cancels, as well as signifies they have a financial interest in your property. Insurance coverage and additional insured status issues The lease required both Landlord and Tenant to obtain commercial liability insurance. Landlords feel this protection is like “a belt and suspenders.”. Landlord as Additional Insured. When it comes to Personal coverage, the landlord needs to be listed as an additional interest. The landlord of the home we were interested in renting is requiring us to add her as additional insured (not additional interest) to our renters insurance policy. Is my intuition correct that this is very suspicious activity? Seems unusual to me - landlord should have his own liability policy. Its absolutely legal. Should I totally nix the apartment? They will NOT receive money for your personal property. As said above he just wants to be added to be able to recover damages under your policy. Your liability policy should protect you should you be sued for a dog. The landlord of the home we were interested in renting is requiring us to add her as additional insured (not additional interest) to our renters insurance policy. In addition, Tenant’s liability policy naming Landlord as an additional insured only covered the premises and did not extend to the common areas. I'd speak to an insurance agent before deciding how you want to proceed. When a landlord is asking to be listed as "additional insured", what they are typically asking for is liability extension (sometimes called Section 2 Coverage). Insurance. What does “Additional Insured” mean? B. I am nervous about things like him making claims in my name, and or us having issues with liability. You can have it read “landlord is named as additional insured in regards to general liability if required by written contract.” This is very narrow language and satisfies the requirement if its in your lease. As an additional insured, you're typically covered for claims from the named insured's negligence or from negligence committed jointly by you and the named insured. So that "additional insured" would extend your policy to defend the property management company. Adding landlord as "additional insured" to liability renter's insurance. Why would our landlord need to be on that? This is not wholly unusual and he would only be covered if he was brought into a suit that was brought against you. When a landlord is asking to be listed as "additional insured", what they are typically asking for is liability extension (sometimes called Section 2 Coverage). The landlord wants to make sure they’re not going to get sued if someone gets injured in your apartment because your coverage will be primary for that. They also exclude cl… As with most other types of policy, additional insured endorsements will be limited. 2. Its absolutely normal. One of the most common reasons for providing additional insured coverage is a contractual requirement. That can't happen if the landlord is listed as an additional insured. Would there be a conflict of interest if the tenant starts a fire. I am looking over my policy and I am not seeing a place for additional insured. 4 comments. B. This is to buffer my liability as the owner of the condo on a claim that I should not be liable for.". If the injured party sues the property owner, the landlord (or its insurer) might be liable for damages. Although an additional insured endorsement makes the landlord an “insured” of the tenant’s policy it does not cover everything. The lease defines who is responsible for what and which policy applies. It's definitely normal for reasons others have told you. An “additional insured” is a person or entity other than the named insured who is protected under the terms of the insurance policy sometimes referred to as the “loss payee. When a property owner leases all or a portion of a building to a tenant, the property owner bears a risk that someone could be injured on the rented property while visiting the tenant. Almost every commercial landlord requires the tenant to maintain liability insurance and name the landlord as an additional insured. There is a lot of ambiguity in the term "additional insured". Landlords and building owners commonly require tenants to name them as additional insured. However, the landlord is an animal and has a … Without being named as an additional insured, a certificate holder is not entitled to any rights under the insurance policy referenced in the ACORD 25 (2010/05) certificate. I have never been asked to do this. I'm seeing online that this happens sometimes, but also reading that it's a very bad idea. For example, a landlord in a commercial building will often require that a tenant have the landlord named as an additional insured on the tenant's insurance policies. If the landlord's rotten fence falls on someone visiting the tenant, that's one policy. To start with, we believe that additional insured status is not what a landlord wants. Landlords and/or apartment complexes are commonly listed as interested parties on renters insurance policies. In this manner, if there is an accident or loss on the tenant's premises (such as a fall or a fire), then the landlord will enjoy the benefits of the tenant's insurance coverage. Archived. But putting that aside for a moment, let’s take a look at some of the impacts of no longer being able to use a lease that requires additional insured on a tenant’s insurance policy. You can have it read “landlord is named as additional insured in regards to general liability if required by written contract.” This is very narrow language and satisfies the requirement if its in your lease. That's a HUGE difference and they're voiding all the coverages they actually want to be able to access if they insist on this stupid becoming an additional insured. Press question mark to learn the rest of the keyboard shortcuts. You’re absolutely right that the policy is for your property or if someone hurts themselves. The tenant’s general liability insurance policy should include an additional insured endorsement for the landlord as well as citing them on the declarations page as a loss payee. Landlord/Tenant in residential is an adversarial relationship. I have clarified with him multiple times that this is what he means and that it would not suffice for him to be listed as an interested party. An additional insured endorsement may not provide coverage for claims due to your negligence alone. When one business performs work for another, the hiring company often demands coverage as an additional insured under the other party's general liability policy.The obligation to provide coverage is stipulated in a written contract signed by both parties. There are two parties, NOT three. It's not a big deal and most companies will do that no problem. A named driver policyonly covers drivers explicitly listed as named drivers on the policy. We received a response as this is standard. Most reputable insurance companies understand that adding an Additional Insured is in their client’s best interest and will do so upon request for little or no additional cost. However since you stared that you clarified this with the lessor it sounds shady as a lessor to do so. There are also times when specialty coverages are needed in order to protect the best interest of the tenant. After endorsement , … Additional insured is for commercial accounts, when the two entities are presenting as a united front - Like a subcontractor and a GC, or a Lessee and a Lessor in a commercial space in which the tenant has made as many modifications to the space as they wish. We’ve written at length on additional interest vs. additional insured. For the general liability insurance coverage and policies required to be held by Tenant pursuant to this Section 9(b) Tenant shall name Landlord as an additional insured party, if permitted by the insurance carrier at commercially reasonable rates. This gives landlords, investors, or business partners who are added as an additional insured fair warning that they will no longer be covered as an additional insured under the policy. Additional Insured: A type of status associated with general liability insurance policies that provides coverage to other individuals/groups that were not initially named. The landlord is providing furnishings or other household goods whose value is lower than his insurance deductible Otherwise, additional … Interested party means they are notified of policy termination or if there is a loss. It's VERY cut and dried who is responsible for what - The landlord's insurance company usually requires that the renter have enough insurance to pay for rebuildng the home if someone falls asleep with their favourite soup simmering and burns the house down. Subrogation allows my insurance to go after the tenant in an at fault situation. Additional Insured: On the other hand, additional Insureds are added to the policy due to a relationship they have with the named insured. When, oh when, will commercial agents come to their senses and realize that they're hamstringing their clients with bad advice on this issue?! Most insurance companies will not automatically add the landlord as an additional insured but it will do so at no additional costs to the tenant if asked. This just shows the coverage you have, and it will entitle them to receive any notifications if your policy cancels for non payment, etc. Which is better, additionally insured or additional interest, for the landlord. Is that correct if they never requested it? Without the Additional insured status, you need to have tenant #1 file the claim, which they may not want to do. In the realm of additional insured endorsement coverage cases in the landlord-tenant context, litigants often refer to rival lines of cases—Harrah’s Atl. It means different thing to different industries and even different departments in an insurance company. We are looking to rent a house. provide for such additional insured. With respect to the insurance afforded to these additional insureds, the following is added to Section III – Limits Of Insurance: If coverage provided to the additional insured is required by a contract or agreement, the most we will pay on behalf of the additional insured is the amount of insurance: 1. When you add your Property Manager as an Additional Insured on your landlord policy, it means that any coverage you have is extended to them. Insurance. I live in a condo, and my landlord (a commercial real estate company) is requiring me (and all other tenants) to name them as an insured on my renter's insurance policy. Posted by. When considering whether or not to sign a commercial lease, you should always look for these terms. Is it a good idea? We get this question literally once a week here. share. In other terms, Lienholders typically want to be put on an auto insurance in the same manner, to signify a financial interest. So let me break it down for you. The site may not work properly if you don't, If you do not update your browser, we suggest you visit, Press J to jump to the feed. Is this normal? I'm seeing online that this happens sometimes, but also reading that it's a very bad idea. If your insurance company will even do it, I'll be shocked. Some also like to know that if the place burns, you have coverage and won’t be coming to them for indemnity on your burnt stuff. Super common. If the tenant's dog dug a hole and the tenant didn't fill it in, and the guest broke their leg, then that's the other. In Wesco Insurance Co. v. Travelers Property & Cas. The landlord and the property management company want to be included as additional insureds in … Coverage for an additional insured is usually tied to the premises, work, or services that are the focus of the business relationship between the additional insured and the named insured. Interinsured Claims Exclusion Did Not Exclude Coverage Where an Additional Insured Landlord Was Not Adverse to a Named Insured Tenant (December 5, 2012) __Cal.App.4th __; 12 C.D.O.S. Reason for Coverage . We were approved for a rental in San Bernardino County CA and it requires renter's insurance (which we would get anyways) but our landlord is requiring they be listed as an "addition insured for injury or damage" on the policy. Additional Interest generally means the insurance company has to notify the additional interest if the policy is canceled or non-renewed - basically something to let the landlord know you're maintaining insurance. I was under the impression renter's insurance was for our property inside the rental and to protect us if someone hurt themselves. Landlords and building owners commonly require tenants to name them as additional insured. I'm sure you can see that from the replies you've gotten here. It NEVER WILL BE. Maybe do a search next time? 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