I have a renters insurance client. The complex is making renters insurance a qualification for signing a lease. The problem is the complex wants to be manuscripted as additional interest or interested party. The insurance company will not do it.
Reasons against it seem obvious because it would be giving certain rights to the complex.
Anybody else have this problem and how do you satisfy the complex?
Apartment complex wants to be additional interest
Moderators: Josh, independent guy
Re: Apartment complex wants to be additional interest
how can they request to be an AI on a policy they have no insurable interest in? it is only covering PP of the named insured and only liability other than that. If they were listed as AI, then they are saying they have insurable interest in the tenants belongings...sounds like they dont know what they are doing
Re: Apartment complex wants to be additional interest
List the apartment complex as an interested party. That should satisfy the apartment complex and also the ins co.
Re: Apartment complex wants to be additional interest
If available, HO 04 41 - Additional Insured (Residence Premises) should statisfy the lease requirement.
The definition "insured" is extended to include the landlord/management company in the policy schedule, but only with respect to Coverage A – Dwelling, Coverage B – Other Structures, Coverage E – Personal Liability, and Coverage F –
Medical Payments To Others, but only with respect to "bodily injury" or "property damage" arising out of the ownership, maintenance or use of the "residence premises". The aparment complex will also be provided notice of cancellation or non-renewal.
The apartment complex is not listed as an additional insured or additional interest as respects your insured's contents.
I am a bit surprised that your carrier would refuse to do this. The endorsement is non-premium bearing, so that should be some indication of the exposure for the insurance company - minimal.
The definition "insured" is extended to include the landlord/management company in the policy schedule, but only with respect to Coverage A – Dwelling, Coverage B – Other Structures, Coverage E – Personal Liability, and Coverage F –
Medical Payments To Others, but only with respect to "bodily injury" or "property damage" arising out of the ownership, maintenance or use of the "residence premises". The aparment complex will also be provided notice of cancellation or non-renewal.
The apartment complex is not listed as an additional insured or additional interest as respects your insured's contents.
I am a bit surprised that your carrier would refuse to do this. The endorsement is non-premium bearing, so that should be some indication of the exposure for the insurance company - minimal.
-
gregcw
- Insurance Journal Addict
- Posts: 160
- Joined: Fri Jun 24, 2005 3:29 pm
- Location: Newport Oregon
Re: Apartment complex wants to be additional interest
Getting them manuscripted may pose some problems. Try pointing out to the complex the following language in the policy regarding contractual liability, which is standard in most, if not all, policies. It sounds like they just want to be made aware if the policy cancels and I don't know of any company that will list an additional insured for liability on a personal lines policy. You might ask the complex if any companies have done this. If they haven't you might suggest that their attorney stop practicing insurance.etimer wrote:I have a renters insurance client. The complex is making renters insurance a qualification for signing a lease. The problem is the complex wants to be manuscripted as additional interest or interested party. The insurance company will not do it.
Reasons against it seem obvious because it would be giving certain rights to the complex.
Anybody else have this problem and how do you satisfy the complex?
AAIS FORM 3 Ed 2.2
2. Contracts and Agreements -- "We" pay for damages for "bodily injury" or "property damage" where the liability of others is assumed by an "insured" under a written contract:
a. that directly relates to the ownership, maintenance, or use of an "insured premises"; or
b. if the contract was made before the loss.
The loss causing the "bodily injury" or "property damage" must have occurred during the policy period.
Gregcw
Re: Apartment complex wants to be additional interest
Very true.
gregcw wrote:Getting them manuscripted may pose some problems. Try pointing out to the complex the following language in the policy regarding contractual liability, which is standard in most, if not all, policies. It sounds like they just want to be made aware if the policy cancels and I don't know of any company that will list an additional insured for liability on a personal lines policy. You might ask the complex if any companies have done this. If they haven't you might suggest that their attorney stop practicing insurance.etimer wrote:I have a renters insurance client. The complex is making renters insurance a qualification for signing a lease. The problem is the complex wants to be manuscripted as additional interest or interested party. The insurance company will not do it.
Reasons against it seem obvious because it would be giving certain rights to the complex.
Anybody else have this problem and how do you satisfy the complex?
AAIS FORM 3 Ed 2.2
2. Contracts and Agreements -- "We" pay for damages for "bodily injury" or "property damage" where the liability of others is assumed by an "insured" under a written contract:
a. that directly relates to the ownership, maintenance, or use of an "insured premises"; or
b. if the contract was made before the loss.
The loss causing the "bodily injury" or "property damage" must have occurred during the policy period.
Re: Apartment complex wants to be additional interest
IS the same language in the ISO HO policies? I can't remember but I don't think so.
[/quote][/quote]AAIS FORM 3 Ed 2.2
2. Contracts and Agreements -- "We" pay for damages for "bodily injury" or "property damage" where the liability of others is assumed by an "insured" under a written contract:
a. that directly relates to the ownership, maintenance, or use of an "insured premises"; or
b. if the contract was made before the loss.
The loss causing the "bodily injury" or "property damage" must have occurred during the policy period.
etimer wrote:Very true.
gregcw wrote:Getting them manuscripted may pose some problems. Try pointing out to the complex the following language in the policy regarding contractual liability, which is standard in most, if not all, policies. It sounds like they just want to be made aware if the policy cancels and I don't know of any company that will list an additional insured for liability on a personal lines policy. You might ask the complex if any companies have done this. If they haven't you might suggest that their attorney stop practicing insurance.etimer wrote:I have a renters insurance client. The complex is making renters insurance a qualification for signing a lease. The problem is the complex wants to be manuscripted as additional interest or interested party. The insurance company will not do it.
Reasons against it seem obvious because it would be giving certain rights to the complex.
Anybody else have this problem and how do you satisfy the complex?
AAIS FORM 3 Ed 2.2
2. Contracts and Agreements -- "We" pay for damages for "bodily injury" or "property damage" where the liability of others is assumed by an "insured" under a written contract:
a. that directly relates to the ownership, maintenance, or use of an "insured premises"; or
b. if the contract was made before the loss.
The loss causing the "bodily injury" or "property damage" must have occurred during the policy period.
-
gregcw
- Insurance Journal Addict
- Posts: 160
- Joined: Fri Jun 24, 2005 3:29 pm
- Location: Newport Oregon
Re: Apartment complex wants to be additional interest
[/quote]etimer wrote:IS the same language in the ISO HO policies? I can't remember but I don't think so.
AAIS FORM 3 Ed 2.2
2. Contracts and Agreements -- "We" pay for damages for "bodily injury" or "property damage" where the liability of others is assumed by an "insured" under a written contract:
a. that directly relates to the ownership, maintenance, or use of an "insured premises"; or
b. if the contract was made before the loss.
The loss causing the "bodily injury" or "property damage" must have occurred during the policy period.
Yes, similar language IS in the ISO contract.
HO 3 08/01
Exclusions Coverage E - Section F. paragraph b page 23
b. Under any contract or agreement entered into by an 'insured'. However this exclusion does not apply to written contracts:
1) That directly relate to the ownership, maintenance or use of an "insured location", or
2) Where the liability of others is assumed by you prior to an "ocurrence"; unless excluded in a. above or elsewhere in this policy.
Gregcw
Re: Apartment complex wants to be additional interest
This is the form I am using: G1-71026-A Ed. 04-04 and I can not find it within the form.
It seems to be an ISO form because it has the wording: Includes copyrighted material of Insurance Services Organization.
I executed a search on the policy PDF and there were two incidents of the word contract.
One was
10. Fire Department Service Charge
We pay up to $1,000 for your liability assumed by contract or agreement for fire department charges
The other was under:
Losses we do not cover
2. Personal Liability does not apply to:
c. Property damage to property rented to, occupied or used by or in the care of any covered person, it the covered person is obligated by contract to provide specified insurance for such property.
It seems to be an ISO form because it has the wording: Includes copyrighted material of Insurance Services Organization.
I executed a search on the policy PDF and there were two incidents of the word contract.
One was
10. Fire Department Service Charge
We pay up to $1,000 for your liability assumed by contract or agreement for fire department charges
The other was under:
Losses we do not cover
2. Personal Liability does not apply to:
c. Property damage to property rented to, occupied or used by or in the care of any covered person, it the covered person is obligated by contract to provide specified insurance for such property.
Yes, similar language IS in the ISO contract.gregcw wrote:etimer wrote:IS the same language in the ISO HO policies? I can't remember but I don't think so.
AAIS FORM 3 Ed 2.2
2. Contracts and Agreements -- "We" pay for damages for "bodily injury" or "property damage" where the liability of others is assumed by an "insured" under a written contract:
a. that directly relates to the ownership, maintenance, or use of an "insured premises"; or
b. if the contract was made before the loss.
The loss causing the "bodily injury" or "property damage" must have occurred during the policy period.
[/quote]HO 3 08/01
Exclusions Coverage E - Section F. paragraph b page 23
b. Under any contract or agreement entered into by an 'insured'. However this exclusion does not apply to written contracts:
1) That directly relate to the ownership, maintenance or use of an "insured location", or
2) Where the liability of others is assumed by you prior to an "ocurrence"; unless excluded in a. above or elsewhere in this policy.
-
glen.de.rozario
- Insurance Journal Fan
- Posts: 3
- Joined: Wed Sep 10, 2008 8:23 am
Re: Apartment complex wants to be additional interest
What do you mean they wont do it ? Are they really into Banking or some funny stuffs, why wont they refund ?
Re: Apartment complex wants to be additional interest
The association has no interest in the contents and if the need arises the association could file a claim against the tenants liability.
Here is their reason and it does make sense.
Underwriter and customer service rep
The Association cannot be added as they have no interest in the policy. This is strictly a tenants policy for contents and liability. The Association has no interest in the insured's contents and we cannot extend liability to them because there is no interest.
Here is their reason and it does make sense.
Underwriter and customer service rep
The Association cannot be added as they have no interest in the policy. This is strictly a tenants policy for contents and liability. The Association has no interest in the insured's contents and we cannot extend liability to them because there is no interest.
glen.de.rozario wrote:What do you mean they wont do it ? Are they really into Banking or some funny stuffs, why wont they refund ?
Re: Apartment complex wants to be additional interest
etimer,
Find another insurance company they are losers. Every company I do business with will add the complex. They want to protect themselves from law suits from their tenants. It would be similar to a commercial building requiring a lessee to carry GL.
Porter
Find another insurance company they are losers. Every company I do business with will add the complex. They want to protect themselves from law suits from their tenants. It would be similar to a commercial building requiring a lessee to carry GL.
Porter
Always Be Closing!
Re: Apartment complex wants to be additional interest
It is Encompass and I don't think, the last time I checked, they are a loser company. That means Allstate won't do it either.
I called a friend that has been in the business for over thirty years, works at an agency with 90 employees, they have a lot of ins. company contracts and she said none of their companies would do so on a renters policy.
I called a guy that works with Peerless and he doesn't think Peerless would do it.
Other parties can request a lot of things but that doesn't mean they will get it. Kind of like the GC requesting he be named as an AI on the subs BAP when requiring additional insured status is unnecessary.
http://kb.erenterplan.com/idx.php/6/002/article
"My landlord wants me to purchase renter's insurance and name him as an "Additional Insured" on the policy. Why would he want a tenant to do this? Is it possible to name him as an additional insured on my policy?
Being listed as an additional named insured, allows the property owner to be notified upon cancellation of your policy. This practice is very common in commercial insurance policies. In reality, most insurance companies providing renters insurance policies will not agree to list your property owner as an additional named insured. This is because in the event of a lawsuit between you and the property owner, the insurance company would have the obligation to defend both parties against each other and to pay any sums either might be obligated to pay each other.
As a solution, many insurance companies will agree to name a property owner as a certificate holder which provides them the notice protection they are looking for but does not make them a direct insured under the policy. This is a similar concept to what your bank requires on your auto loan to insure you maintain auto insurance."
Most, if not all, the commercial policies I have will have the language about "Additional Insureds When Required By Written Contract, Written Agreement Or Permit. The person(s) or organization(s) identified in Paragraphs a. through f. below are additional insureds when you have agreed, in a written"
Commercial leases are a different animal. Such as in a commercial lease you may be responsible for the comercial HVAC equipment, etc. I doubt if an apartment owner will be responsible for a new furnace. So it follows that personal tenant insurance will be different from a commercial form.
I tend to agree with the Encompass reason.
I called a friend that has been in the business for over thirty years, works at an agency with 90 employees, they have a lot of ins. company contracts and she said none of their companies would do so on a renters policy.
I called a guy that works with Peerless and he doesn't think Peerless would do it.
Other parties can request a lot of things but that doesn't mean they will get it. Kind of like the GC requesting he be named as an AI on the subs BAP when requiring additional insured status is unnecessary.
http://kb.erenterplan.com/idx.php/6/002/article
"My landlord wants me to purchase renter's insurance and name him as an "Additional Insured" on the policy. Why would he want a tenant to do this? Is it possible to name him as an additional insured on my policy?
Being listed as an additional named insured, allows the property owner to be notified upon cancellation of your policy. This practice is very common in commercial insurance policies. In reality, most insurance companies providing renters insurance policies will not agree to list your property owner as an additional named insured. This is because in the event of a lawsuit between you and the property owner, the insurance company would have the obligation to defend both parties against each other and to pay any sums either might be obligated to pay each other.
As a solution, many insurance companies will agree to name a property owner as a certificate holder which provides them the notice protection they are looking for but does not make them a direct insured under the policy. This is a similar concept to what your bank requires on your auto loan to insure you maintain auto insurance."
Most, if not all, the commercial policies I have will have the language about "Additional Insureds When Required By Written Contract, Written Agreement Or Permit. The person(s) or organization(s) identified in Paragraphs a. through f. below are additional insureds when you have agreed, in a written"
Commercial leases are a different animal. Such as in a commercial lease you may be responsible for the comercial HVAC equipment, etc. I doubt if an apartment owner will be responsible for a new furnace. So it follows that personal tenant insurance will be different from a commercial form.
I tend to agree with the Encompass reason.
Porter wrote:etimer,
Find another insurance company they are losers. Every company I do business with will add the complex. They want to protect themselves from law suits from their tenants. It would be similar to a commercial building requiring a lessee to carry GL.
Porter