Renters Legal Liability
  Renters Legal Liability
Frequently Asked Questions


Question: Why would I need Renters Legal Liability™ Insurance?
Answer: Every year, residents of rental properties cause thousands of dollars in negligent damages.  Those costs have been historically borne by the owner and his/her property insurance.  Few residents have the financial means necessary to cover a large loss due to their own negligence.  Renters Legal Liability™ Insurance provides an easy, economical way for residents to meet their lease obligations.
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Question: As an owner, will I lose residents if I pass the cost of renters liability insurance to my residents?
Answer: No. According to a recent survey conducted by the US Census Bureau, residents were asked to give a primary reason for moving.  In that 2006 survey, residents cited lower costs for housing as the 7th reason, equal to 6.15% of the time.  The main reasons residents gave for moving were related to home purchasing decisions, or a change in employment.
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Question: How would I be reimbursed for losses that occur as a result of resident negligence?
Answer: If you require residents to carry insurance as part of your leasing agreement, you would contact the resident and proceed against his/her insurance carrier.  HOWEVER, if the policy is issued by Renters Legal Liability™ Insurance, you would simply call the toll free number or complete the website form to initiate a claim.  Under the RLL policy, the property owner/manager is the Named Insured, and is entitled to be paid first according to the priority of payments. 
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Question: How does a property owner or manager make sure the resident has an insurance policy that includes coverage for resident negligence?
Answer: If the resident provides proof of coverage under a ‘renters insurance’ policy, you can request a copy of the certificate of coverage from the resident (the agent will provide the certificate to the resident).  If the resident is participating in your Renters Legal Liability™ Insurance program, you can verify coverage at any time through the proprietary computerized monitoring program included at no cost with RLL participation.
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Question: How can I monitor the residents’ compliance with my leasing requirement for carrying liability insurance for damages they might cause?
Answer: If you choose the Renters Legal Liability™ Insurance Program, you will have access at any time to the proprietary computerized monitoring system which allows you to track participation and enroll residents.  If your residents carry their own HO4 renter’s insurance policies, you can request they provide you with a copy of the certificate of coverage.  Residents may cancel or fail to renew their policies at any time, by notifying their carrier.  They may or may not be required to notify you.
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Question: Is it legal to require residents to carry insurance to live in my property?
Answer: At the present, there is nothing prohibiting property owners/managers from establishing leasing requirements that can include requiring residents to carry liability insurance.  In some instances, however, such as rent-controlled properties, the owner/manager may not pass along the cost of any insurance to the resident since it would effectively raise the rent.  You can include the requirement of maintaining insurance as part of the lease; you may want to check with your attorney for specific language or to verify local codes. 
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Question: How do I get reimbursed for a fire that is accidentally started in one of the units in my property?
Answer: For properties that participate in the Renters Legal Liability™ Insurance, you can call or use the website notification link to begin the claims process and verify coverage of the resident.  Benefits are paid in the following priorities, to the extent of the $100,000 policy limits:
  • First, to the owner/manager to the extent of owner's loss;
  • Second, to the adjacent (non-negligent) resident(s) to the extent of such residents' personal property loss;
  • Third, to the negligent (damage causing) resident to the extent of such resident's personal property loss, up to $5,000.
Additionally, in the event of displacement, it pays up to $1,000 for each displaced resident.  This limit is included in, and does not increase, the applicable Limit of Insurance shown in the declarations.
Once the claims process is begun, an independent adjuster will investigate and complete a report for the underwriter's Claims Processing.  Payment for damages will come to the owner/manager directly, in first priority.
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Question: Who sells Renters Legal Liability™ Insurance?
Answer: Only authorized independent insurance agents licensed to do business in your State or Renters Legal Liability can market the policy.
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Question: How can I obtain Renters Legal Liability™ Insurance?
Answer: Contact your own insurance agent, or Renters Legal Liability LLC:
Renters Legal Liability LLC
525 East 100 South, Suite 100
Salt Lake City, UT 84102-2070
Phone:  801-994-0237
Toll Free:  800-770-9660
Fax:      801-596-2732
Email Address: sales@rllinsure.com 
or by completing the contact form on this website.
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Question: Can I ask my own agent to obtain Renters Legal Liability™ Insurance?
Answer: Yes
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Question: How will Renters Legal Liability™ Insurance fit with my existing insurance?
Answer: Very well.  For damage due to resident negligence, the Renters Legal Liability™ Insurance policy pays first.  For small claims, the damage may be largely covered by the RLL policy alone.  For larger claims, it can mean covering the deductible for the loss and a portion of any extensive damages.  The addition of the Renters Legal Liability™ Insurance policy can mean reduced premiums and a lower claims ratio on your primary property coverage, helping you manage costs. 
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Question: If I have Renters Legal Liability™ Insurance at my properties, are my employees required to sell the insurance?
Answer: No. Renters Legal Liability™ Insurance is sold by licensed insurance agents to the owner or manager. On-site management teams are not licensed to sell insurance.  Residents who accept coverage are enrolled in the owner/manager's policy at the time other leasing documents, either initial or renewal, are signed.  Any questions beyond the explanatory materials provided concerning coverage, policy details, or participation can be referred to Renters Legal Liability at 800-770-9660 or info@rllinsure.com . If the property accepts the resident's policy, that insurance policy is sold directly to the resident by a licensed agent.
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Question: What's the difference between Renters Legal Liability™ Insurance and other renters insurance policies?
Answer: First, Renters Legal Liability™ Insurance is not a traditional renters insurance policy. Typical renters insurance is a two-part form which includes personal property coverage for the renters' belongings, and personal liability.  The Named Insured under renters insurance is the renter. The primary purpose of renters insurance is to protect the renter against loss. 
Renters Legal Liability™ Insurance is a legal liability policy designed to insure the contractual obligation the resident assumes (at lease) to be financially responsible for damages due to negligence. The Named Insured is the owner/manager, with residents listed as Additional Insureds. The primary purpose of the program is to protect the property owner's investment first, from negligent damage, and provide a means for residents to assume their financial responsibility without financial ruin. The policy and program are unique. 
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Question: If there is a lease clause for my properties requiring liability insurance, can I mandate which policy the residents buy?
Answer: No. Such practice is forbidden by insurance regulation.  If a resident is required to provide proof of insurance as a condition of living in your community, the resident may satisfy that requirement by participating in Renters Legal Liability™ Insurance or by purchasing a renters policy from a licensed agent.  The resident can provide you a copy of the Certificate of Coverage, from the agent. 
You can, however, specify the minimum liability coverage to be maintained by the residents. You can also request confirmation of policy renewals if the policy is set to expire prior to the end of the lease.
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Question: What is meant by blanket coverage?
Answer: The term 'blanket' coverage refers to a specific kind of coverage in insurance terms, but is sometimes incorrectly used to describe the implementation of a renters insurance program as 'blanketing' the community. In fact, the presence of any insurance program where participation by the renter is discretionary, may not provide the risk protection owners need.  The community is best protected when the owner has the means to monitor individual unit coverage at any time, and to enroll residents who do not provide their own insurance coverage, in the community program.  Renters Legal Liability™ Insurance has the proven monitoring system and policy form to cover your properties.
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Question: Can I make a requirement for resident liability insurance effective immediately with my residents?
Answer: Not immediately, no. Your ability to implement changes in your lease agreement depends upon how that agreement has been structured.  Most often, the lease agreement is written to set rents and fees for a specified time period, with both parties agreeing to the terms. If you implement the Renters Legal Liability™ Insurance program, the first residents enrolled will be those who sign a new lease, those who renew a lease, and those month-to-month residents who have been properly notified of the new requirement. Normal roll-over of residents depends upon your property's rental history, but usually, within 12 to 18 months, most residents can be insured.
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Question: Does Renters Legal Liability™ Insurance cover my residents' personal property?
Answer: The liability coverage protects your residents' property damaged due to negligence, up to the $100,000 limit, with property damage paid to the owner first, and per occurrence.  Liability damages are paid for the five perils: fire, smoke, explosion, water overflow and sewer backup.
Your residents' personal property is owned by those individuals, and you cannot insure it as the community owner.  Residents who want coverage for their personal property, beyond the liability protection, can purchase individual contents coverage from a company affiliated through our underwriter.  Residents have the option to select an appropriate coverage level, and to authorize payment through a credit or debit card.  Perils covered under the Personal Contents coverage have been broadened to include additional risks, such as burglary and vandalism.  For more information, residents may go online to: http://www.rppinsure.com
Online access is available at any time.  Computer access and a credit/debit card are required.
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Question: Don't most residents in rental communities already insure their belongings by purchasing their own policy?
Answer: Unfortunately, no. Residents often believe that the owners' policies protect them from loss as long as they reside at the property. Residents sometimes believe their rental payments include the cost of insurance, but owners cannot insure property where they have no ownership interest, such as in the residents' belongings. Owners have often been forced to claim on their own policies to recover damages caused by residents, with the result being increased premiums or policy cancellation.
While residents understand principles of other insurance, such as auto coverage which includes liability coverage, many do not appreciate they have agreed in their leases to be financially responsible for damages. Some residents do not believe their belongings amount to enough investment to require coverage, and only realize after a loss the cost of replacing their belongings or paying negligent damages.
Statistically, those residents who do purchase their own policies account for 5-10% of rental residents nationwide. Renters Legal Liability™ Insurance is a great way of helping residents satisfy their contractual obligations. 
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Question: Renters Legal Liability™ Insurance - what's in it for my residents?
Answer: Simply, peace of mind. Renters Legal Liability™ Insurance means that your resident is covered if the accidentally cause damages to the community and their neighbors, without the prospect of losing their home, or facing financial consequences for years to come.   
Plus, with our affiliation with the Personal Contents program, any resident who wants an added level of protection can select coverage, for very competitive rates, and arrange payment of premiums by completing a simple application.  For information or to apply, visit:
http://www.rppinsure.com for more details.
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