HOW DOES THE PROPERTY MANAGER REQUIRE TENANTS TO OBTAIN THIS INSURANCE?
The Property Manager includes this as a mandate in every lease agreement, and every lease renewal as a new policy.
The Landlord requires coverage of $100,000 per the lease agreement. Tenants may opt out of this coverage by obtaining a similar policy from their own insurance company of choice. Or – they can do nothing, and this coverage will be added to their monthly rent payment automatically.
HOW DOES A TENANT BENEFIT FROM THIS COVERAGE?
The Tenant is protected against accidental incidents within the home that would be the fault of the tenant. In the event of an incident without this required insurance, the Landlord would be forced to make a claim with the Landlord’s insurance company. Under that claim, the Landlord’s insurance company would then seek legal action against the tenant to get reimbursed for the claim.
HOW IS THIS COVERAGE DIFFERENT FROM RENTER’S INSURANCE?
The standard HO-4 Policy, more commonly known as “Renter’s Insurance” only covers contents for the Tenant inside the rental home and offers some liability protection. However, with most Renter’s Insurance policies, if there is a claim for damage to the home from tenant negligence, the Landlord’s insurance would have to cover the loss.
DOES THIS POLICY COVER ANY OF THE CONTENTS OF A TENANTS HOME?
NO. We encourage all Tenants to seek out Renter’s Insurance to specifically cover their personal contents inside their home and vehicles.
IS THE PROPERTY MANAGER REQUIRED TO HAVE AN INSURANCE LICENSE?
NO. The Property Manager is implementing a policy inside their lease agreements that will mandate this coverage for all Tenants that you manage. You are simply ensuring lease agreement compliance by offering this policy.
WHY WOULD A TENANT WANT THIS COVERAGE?
The Platinum Tenant Liability Coverage is a streamlined method to meet the Landlord’s requirement in the lease to provide the required liability coverage. By opting into this policy through the lease, Tenants meet the required coverage of $100,000 per occurrence and indemnify themselves from further legal action resulting from a loss to the property associated with a claim.
WHY WOULD A HOMEOWNER WANT A PROPERTY MANAGER TO IMPLEMENT THIS INSURANCE COVERAGE?
The Homeowner (Landlord) benefits greatly from the additional mandated coverage of $100,000. If a tenant is involved in an incident that this insurance would cover, the Landlord would not have to file a claim with their Homeowner’s Insurance. Meaning their rates will not rise, and their policy would not be cancelled because of an incident where this coverage would reimburse their loss.
ARE TENANTS ALLOWED TO OPT OUT OF AUTOMATICALLY BEING ENROLLED IN THIS COVERAGE?
Yes. The Landlord only mandates the coverage of $100,000 in Tenant Liability Insurance. The tenant is allowed to seek coverage by their own provider. The Tenant only needs to provide the Landlord proof of insurance showing that the Landlord was named as an “Additionally Interested” party, and covering the $100,000 per occurrence.
