Can My Landlord Force Me to Get Renters Insurance?

Q: I’m a renter living in a Midtown co-op, subletting my apartment from a shareholder. The co-op board recently changed its rules, and now requires all shareholders and subletters to purchase renters insurance. But my landlord is the shareholder, not the co-op, so am I really required to follow the co-op’s policy? Since my sublease does not include any requirement about renters insurance, how could my landlord enforce such a rule?

A: Your sublease may not explicitly require you to get renters insurance, but you will probably have to get it anyway. Your rental agreement most likely includes a provision requiring you to comply with whatever obligations the shareholder has to his or her proprietary lease, the co-op bylaws and the house rules, even if they change after you move in.

“It’s not uncommon for a subtenant to find out that the house rules have changed — you can’t have potted plants on the windowsills anymore, or something more substantive,” said Eric D. Sherman, a real estate lawyer and a partner in the Manhattan office of the law firm Pryor Cashman.

Co-ops often require residents to get renters insurance to protect the building and minimize any fallout from a mishap. Let’s say you leave the faucet on and the ensuing flood damages the apartment below yours. The downstairs neighbor might sue you and your landlord for damages. The co-op wants to know you’re covered, and limit the number of claims anyone files under its master policy.

“The co-op wants all parties to have insurance so that it does not have to be drawn into any finger-pointing about the claim,” said Jeff Schneider, president of Gotham Brokerage, which specializes in apartment insurance.

Renters insurance is not very expensive — the average cost for a policy in New York is $211 a year, according to ValuePenguin, a personal-finance website. In addition to the liability coverage, the coverage for your personal belongings usually includes events that happen away from home, too. Say your laptop gets lost or damaged while traveling, or your bike gets stolen when it’s locked on the street — you could file a claim for such losses. So as frustrating as this new policy may seem, an added layer of coverage could one day benefit you.

Source: nytimes.com