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Renter's insurance

How much should I ask my renter to purchase renter's insurance? The house is a 4br/3full bath, and den house in Chandler, AZ. What is a typical coverage a renter should purchase and would adequately protect the landlord?

Also, I've heard of something about add the owner in the insured. Can you shed some light on this pls..

Thx.

  • May 20 2011 - Chandler
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Answers (6)

Best Answer

Dear Snow:

You should have a landlords policy for the house structure in your own name. The renter can get Renters insurance for their possessions that may be damaged or stolen. The value of their possessions dictates the amount of coverage they should ask their insurance agent for. It is reasonable.

You would have no reason to be named as an insured party to their possiessions. Your possessions that may be on the property would be covered in your landlord policy.

Jeff Masich, Realtor
Arizona Homes and Land
HomeSmart
  • May 20 2011
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There is a very helpful webisite you can visit on this subject:

http://www.rentlaw.com/renterinsurance.htm

Again 
best of luck
  • June 12 2011
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I would suggest you should always include in the lease that the renter will obtain insurance to cover off both his personal possessions and ALSO Personal Liability.  You need to ask your insurance broker for a Renters Insurance policy.  This protects you the landlord.  Your portion covers the building/structure, any personal possessions that remain at the property, Loss of Use (important if anything makes the home inhabitable for any reason) and Liability.  The Renters portion will usually cover his personal possessions and Personal Liability.  It is my understanding that if you the landlord are named as additional insured on the renters policy, if a liability claim was to be made cconcerning for example an accident at the home,  it would hit the renter's insurance before making a claim on your own. I recently rented a propery I own and the renter carried $500K liabiity with me as additional insured.  My own policy covers me for $300K additional Personal Liability.
The change in policy terms actually reduced my annual premium. I agree with Jason - don't leave the property vacant for more than 30 days or you may not be covered.
 I live in Florida and the laws may not be the same. I only speak from personal experience and you need to consult with a professional in this area.
Good luck!
  • June 12 2011
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Being named as an additional insured would not hurt, but probably would not provide much additional protection for you. If there is a liability claim, the plaintiff will most likely go after everyone they can, tenant, owner, property manager or anyone else tied to the property. More liability the tenant carries the better. You will need to talk to an insurance agent that is familiar with rentals to get an idea of minimum recommended coverage. If you are requiring the tenant to have insurance, make sure that it is in your lease agreement, otherwise you will not be able to require the tenant to purchase insurance.

To protect yourself, you should carry as much liability insurance as reasonably affordable. Make sure you have appropriate coverage for a rental. A regular home-owner's policy is not what you want as it will not cover things such as rent loss. A landlord policy is usually cheaper as you don't need much content coverage. Also be aware of what may not be covered. In addition, many things won't be covered if the property is vacant for more than 30 days. While it is vacant, you may need to change your policy.

First line of defense is to protect your personal assets. How do you hold title? I don't know of any case where it would make sense to hold property in your name. If there is ever a claim, all your personal assets could be at risk.

I am not an expert when it comes to insurance. You should seek advice from an insurance specialist. (For legal advice, consult an attorney.)
  • May 21 2011
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Profile picture for SnowDesert
Thx..  I do have a home owner's policy that covers 500K. One of the insurance agents who is also a landloard, recommended at least a 300K renter's insurance in liability in their policy (this is in addition to the tenant's possesstions coverage of 30K) , and to add a clause in their policy that the landlord is an insured, in case they decide to sue or for whatever reason, their insurance would kick in before the landlord's insurance.

Is this a reasonable request?

Thx
  • May 21 2011
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Profile picture for wetdawgs
Renter's insurance is only for the renter's possessions.  The renter is not responsible for insurance for the property/structure, that is always the landlord's responsibility.

  • May 20 2011
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