As a reminder, a new law went into effect on January 1, 2022, that requires owners of rental property to have a general liability insurance policy in place with minimum coverage of $100,000 to cover people who are injured in or on the rental property as a result of the landlord’s negligence. The law states that the landlord “shall provide a copy of the declaration page showing the policy” with the written lease to the tenant along with the rental at the start of the tenancy and each time that the insurance policy is renewed.
Here are some frequently asked questions that have arisen since the law first took effect.
Must the landlord obtain a new, separate insurance policy?
No. If a landlord already has a general liability insurance policy with the required amount of coverage, an additional policy is not required.
No. If a landlord already has a general liability insurance policy with the required amount of coverage, an additional policy is not required.
What information needs to be provided to the tenants?
The law requires a landlord to give the tenant a copy of the declaration page from the insurance carrier. A landlord should document that the tenant received a copy of the declaration. A landlord can attach it to the lease or other rental agreement, have the tenants initial it, or email or text the declaration.
The law requires a landlord to give the tenant a copy of the declaration page from the insurance carrier. A landlord should document that the tenant received a copy of the declaration. A landlord can attach it to the lease or other rental agreement, have the tenants initial it, or email or text the declaration.
Can the landlord redact personal information from the declaration, such as the amount of the premium, discounts, or the name of the landlord’s lender?
While the law does not specifically prohibit the landlord from blacking out personal information, such as the premium, discounts, deductible, etc. on the declaration, make sure that the declaration shows the name of the insured, the property that is covered by the policy, and the name of the carrier, policy number, that the coverage complies with the minimum requirements of this law.
While the law does not specifically prohibit the landlord from blacking out personal information, such as the premium, discounts, deductible, etc. on the declaration, make sure that the declaration shows the name of the insured, the property that is covered by the policy, and the name of the carrier, policy number, that the coverage complies with the minimum requirements of this law.
Does this requirement apply to existing tenants?
Yes and no. If a tenancy was already in effect prior to January 1, 2022, the landlord would not be required to give a copy of the declaration until the policy is renewed.
Yes and no. If a tenancy was already in effect prior to January 1, 2022, the landlord would not be required to give a copy of the declaration until the policy is renewed.
How does the law apply to rentals without a written rental agreement?
If there is not a written rental agreement, give a copy of the policy to the tenant when the tenant moves in and/or when the policy is renewed
If there is not a written rental agreement, give a copy of the policy to the tenant when the tenant moves in and/or when the policy is renewed
If the rental is a condominium, must the landlord also provide a copy of the declaration for the condominium association’s master insurance policy to the tenant?
No, the landlord would only be required to provide a declaration of his or her own liability insurance policy.
No, the landlord would only be required to provide a declaration of his or her own liability insurance policy.
How does this apply to mixed-use rental property?
The law applies only to residential rental units. “Residential” means that the unit is used as a dwelling unit, regardless of how many total units there are in the property. The landlord is not required to provide a copy of the declaration to commercial tenants.
The law applies only to residential rental units. “Residential” means that the unit is used as a dwelling unit, regardless of how many total units there are in the property. The landlord is not required to provide a copy of the declaration to commercial tenants.
What are the penalties for violation?
The landlord cannot legally charge rent until the landlord complies with this and maintenance duties in the law.
The landlord cannot legally charge rent until the landlord complies with this and maintenance duties in the law.
The tenant can also pursue remedies that are available for violations of any part of the Residential Landlord-Tenant Act, such as terminating the rental agreement; actual damages; obtaining injunctive relief, and, in some cases, reimbursement for attorney’s fees. Landlords should consult an insurance agent to determine whether it makes sense to increase the limits of the policy to protect their assets.
For more information, please contact the RIAR Legal Department at 401-432-6945 or email [email protected].