QUOTE (llee @ May 19 2010, 07:30 AM) An agent on the phone (PC Insurance) said tenant`s insurance is very important (we all know that). However, he added that landlord should pay the tenant to carry it (if the tenant insists no having one). The reason is that if the tenant has no liability coverage, and if someone sues them (for example, water damage to other unit), the landlord might be held liable.
Is it true? It seems unreasonable to me.
It has been my experience that the majority of Tenants have no issue with carrying insurance once I provided them with general information and names of a few companies that offer good deals for Tenants. For those who do not provide me with proof of Tenant insurance I would not provide it for them. But of course you carry your own insurance. So your insurance company will address any repairs and related costs while things are being hashed out. You should also be covered for any law suits that result.
I have had the disturbing occasion to deal with a Tenant who`s suite caught fire. The unit was totally destroyed and there was smoke damage to the common areas & other units as well as major damages done to the roof (it was a top unit) The Tenant did not have insurance but my insurance company paid for all the repairs and related costs while an investigation was being done. It was determined that the Tenant left a faulty air condition plugged in which started the fire while she was away. So at this point it was up to my insurance company to pursue the Tenant for costs. This is why they make the big money.