Help Clarify?
I was reviewing several different leases that I may use and I had a question... Under the rental insurance section it says " The lessee's personal property insurance policy shall contain the name of the lessor as one of the payees in the lost clause paragraph" Can someone expalin how that would work, Im somewhat unclear about that statement... thanks
Your renter calls his insurance company and purchases renter's insurance to cover his personal property and any liability coverage your renter may wish.
Your renter also names you (the landlord) as an additional named insured on his renter's policy.
does this in any way conflict with the homeowners policy in place?
As a landlord, you don't have a homeowner's policy in place. Instead, you have a landlord's policy that just covers the building structure and your own personal liability.
Your landlord policy does not protect your tenant's personal property. The renter's policy fills this gap.
so if im an insured on their policy, is only the property i have stored at the property insured, ?? Kind of confused what Im insured for on their policy>>
mfparks,
This protects you in case there is any payout for which you should be protected. About the only situation I can think of where this would be the case is if the renter was found liable for damages. You could also be insured under his policy and be provided coverage. Of course absolution is up to the courts and it's always best to have a comprehensive liabiltiy policy in place to CYA. Believe me when I say, that when attorney's are involved they will sue everyone and let the courts decide who will pay. I'm a newbie at real estate investing, but insurance is what I do untlil I can do what I want.
Your landlord's policy most likely excludes liability for something that occurs in your rented residence. You, as the landlord, along with your tenant could be held responsible for injury to another person or damage to another person's property if an incident occurred within the rented residence. Without liability coverage under your own landlord policy, your tenant's Renters insurance will provide for your legal defense costs if you are named as an additional insured.
The renter's policy will only cover their own personal possessions against loss. Your personal possessions are your responsibility. If you have your personal property stored at the rental property (for example, you provide a washer and dryer for your tenant's use), then your landlord policy will cover you if you elect personal property coverage.
thanks for the clarification... much appreciated