My apartment complex (in California) is forcing their tenents to purchase rental insurance. They will not renew your lease without proof of renters insurance. Is this legal? I know that it is a good idea to have rental insurance, but I am curious if you can legally be forced to buy it.
2006-07-31 12:25:17 · 4 answers · asked by alli_potts 2 in Business & Finance ➔ Insurance
They surely can if their contract, (that you have signed), says that you must have renters.
Actually it is possible that the most important aspect of coverage from the "renters policy" is not recognized by most people.
Let's say you put a pizza in the over at 9pm and fall asleep. The pizza catches on fire and a small fire develops in the apartment. Before the fire department gets it put out, it causes $200,000 worth of damage to the apartment complex.
The landlords insurance company is going to pay him! BUT in their investigation with the fire department it is determined that YOU (negligently), caused the fire. You didn't mean to but, it was due to your negligence. His insurance company is going to come to you and ask you how you intend to repay them the $200,000. It is your responsibility due to your actions! At that time you want to be able to say to them, " I have a renters policy with ABC company, and part of that policy is liability coverage in the amount of $300,000. I shall submit a claim with my ABC company" ! SEE now the reason (in addition to having your own belongings covered?
2006-07-31 13:14:04 · answer #1 · answered by John M 2 · 2⤊ 0⤋
About Renter's Insurance:
If your belongings are destroyed or stolen or someone sues you for an injury in your apartment or home, you are responsible.
No they cannot force you.
Renters Insurance is what you, the renter, can purchase and it's "optional". It usually will cover only your personal belongings and affects (things your apartment management couldn't care less about)
The owner of the property you rent from carries his own insurance to cover any losses he might incur as the result of a fire or natural disaster (or someone getting hurt on his property) and this will usually NOT cover the renters themselves.
You could contact an attorney but you might get the same information from your local Legal Aid Society and it won't cost you anything.
or,
CALIFORNIA DEPARTMENT OF CONSUMER AFFAIRS
1625 North Market Blvd.
Sacramento, CA 95834
(800) 952-5210
Here's something to look through:
California Tenants Rights and Responsibilities:
http://www.dca.ca.gov/legal/landlordbook/
2006-07-31 12:30:59 · answer #2 · answered by GeneL 7 · 0⤊ 0⤋
I have heard this before... whether it's a legal issue, I can't say for sure. I think it could be more that the apartment complex insurance company is limiting their liability of risk, by getting the complex to confirm that their tenants have insurance.
Either way, get the insurance. I'm glad I did =)
2006-07-31 12:30:49 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Your question should be addressed to an attorney in California. And you are correct, it's a great idea to protect yourself.
2006-07-31 12:31:32 · answer #4 · answered by kearneyconsulting 6 · 0⤊ 0⤋