Landlord wants to be additional insured, what will this get him under my policy?

Question

Ok, so it's my understanding by experience, work and googling the subject, that an additional insured is provided coverage under an insurance policy. When I called my insurance company to inquire about adding the landlord as an additional insured, they said there would be no change in premium and landlord would not be given coverage. I guess I don't understand...is this a unique interpretation from my insurance company? What would be the point of adding the landlord if he didn't get covered? I didn't quite understand the rep's explanation of what adding him would exactly do -- something like simply identify him as the landlord. What? Why would anyone need that? If I am forced to get coverage for the landlord, what types of claims is he covered for? What does my renters cover for me? Thanks.

Answer 1

tHE lANDLORD SHOULD HAVE HIS OWN POLICY TO COVER HIS LIABILITY (A DWELLING FIRE POLICY) OR LANDLORDS POLICY. aLL A RENTERS POLICY PROVIDES COVERAGE FOR IS YOUR POSSESSIONS AND YOUR LIABILITY. SOUNDS LIKE LANDLORD IS UNEDUCATED ON THIS MATTER OR TO CHEAP AND TRYING TO PASS THE BUCK TO YOU. ASK HIM A QUESTION "IF i FELL DOWN YOUR STEPS THAT ARE BROKE WHO IS LIABLE?" hE IS YOU WOULD SUE HIM NOT YOURSELF SOP HE NEEDS HIS OWN POLICY TO COVER HIM  

Answer 2

Yes, it would provide him coverage under the policy. a very common example is when you have a lien/loan on a vehicle.  The lienholder is listed as additional insured because they have an insurable interest in the vehicle. so if you get in an accident, they are paid their part as well. same goes with the landlord. if you are sued and he could be held partially liable, he gets coverage under the policy's liability. im assuming you have a renters policy, so they may have been saying he doesnt have cioverage because that policy is basically meant to cover your property, but it does have liability as well.

Answer 3

Sounds like they are only making him a certificate holder, he has no coverage on the policy but he will get a copy of the policy on every renewal.  

None of our companies will add a landlord as additional insured on a tenants policy.  They (your insurance company) are opening themselves up for many lawsuits (especially if this is a multifamily home) it would give the landlord liability coverage for the whole premises - say one of the other tenants sued him for something or a guest of another tenant did.  This is more of a commercial type liability instead of a person liability. Your landlord should have his own liability for the property.  That is why they won't do it.

Also, he & his company would be shooting themselves in the foot if he was added because if you did something to cause the building to burn down (accidentally left a pot burning on the stove), his insurance company that pays for the damages to the building, would NOT be able to come back after your tenants policy to be reimbursed under the liability section.  Liability does not pay an insured (only property - like contents or loss of use), liability only pays OTHER people that are not listed on the policy, it is a 3rd party coverage.

A renters policy will cover your contents (worldwide - so you would have contents coverage while travelling) for things such as fire, smoke, theft, vandalism, water damage from a broken pipe, etc).  You have to pick the limit you need to cover everything you own for replacement value.  It also covers your loss of use if due to a covered loss you couldn't live in your apartment anymore (difference in bills).  It covers your liability, worldwide, so if you get sued for something you did (example - you are boarding a plane & put your carryon in the overhead bin & don't get it in correctly & it falls on someone's head) or failed to do (you are responsible to shovel your walk to your door & you don't & someone slips & falls), the liability will defend you & pay if you are found liable.

I suggest you get at least $500,000 liability (it is cheap) and enough contents to replace everything you own in the event of a total loss.

*** Edit --  The first 2 answers probably deal more with commercial tenants, where a landlord being added is common & also many times in the lease with a commercial tenant, the landlord requires the tenant to provide insurance coverage for the building.  This works because it is a comrmercial policy covering a commerical liability.

But, on a personal policy, this cannot be done.  Years ago, I had a commercial producer in my agency come to me asking me to do this on a personal policy.  I told him it couldn't be done & he didn't believe me until I had my underwriter call him & explain it to him.  He never bothered me again about it.

Answer 4

If you add him as additional insured, what it means is, if someone trips on your rug and sues you for leaving it there, and also sues HIM, because he owns the property, YOUR policy will defend him, and pay any judgements against him.  

Many times, depending on the type of policy it is, and the policy form, that kind of coverage is already built in, so the insurance company doesn't charge anything extra.

Is your underwriter interpreting this correctly?  Who knows.  But as long as they endorse the policy, it clearly says "Joe Smith as additional insured with respect to their interest as OWNER of premises"  or similar, and you get a copy, naming this guy as additional insured, it doesn't matter - the company will be on the hook to pay.

It's very common for a landlord to require this.  It lessens his liability exposure, and HIS insurance company is probably requiring it.