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RPPTL Real Estate Leasing Committee

[RPPTL LandTen] Landlord Mandated Insurance

Mike Davis

Thu, Oct 24, 2019 10:11 PM

I think the key issues that I have seen on landlord mandated insurance lease provisions are: (Assume the facts below are supported by appropriate lease provisions.)

Can the landlord require a tenant have liability insurance in a minimum amount? If so, can the landlord require that the landlord be listed as an additional interest (to be notified if the insurance lapses)?
If the tenant does not have the required insurance, can the landlord force place the required insurance on behalf of the tenant and pass-through the premium charges to the tenant (as "additional rent")? Assume the landlord is charging the tenant only its actual costs of the insurance. I don't want to get into the quagmire of the landlord making a profit from the insurance. That seems to me to be a clear-cut case of landlord selling insurance which I believe requires a license.
If the tenant does not have the required insurance, can the landlord charge a "penalty" (as "additional rent') while the tenant is in non-compliance with the requirement?
My thoughts are there aren't any residential landlord/tenant statutes or case law on insurance. Therefore, absent applicable laws in insurance regulation, the landlord can require it. Since the landlord can require it, the landlord can require reasonable conditions, such as additional insured to be informed of policy lapse. I have a concern that a court may find that requiring renter's property insurance to cover the tenant's property would be seen as a benefit to the tenant. Requiring renter's liability insurance may be seen as less for the tenant and more for the benefit of the owner. But a lot of lease provisions are for the landlord's benefit. I also think that, if the landlord does require liability insurance, the landlord should not require a specific company to avoid allegations of "directing" or "collusion".
A "forced placement" doesn't seem to be a "penalty" as the tenant is getting a benefit. It can be argued that this is the landlord remedying (after notice to the tenant) akin to the landlord remedying in other rental situation. Single family home rentals, tenant responsible for lawn, pool or spa care, 7Cure with warning that if not remedied landlord will remedy at tenant's expense to avoid damage to lawn, pool or spa. Multifamily rentals, the only thing that came to mind was tenant responsible utilities (electric or water), 7Cure with warning that if not remedied (turned on) landlord will remedy at tenant's expense by putting in landlord's name to avoid damage (mold, dead lawn).
In general I think that penalties in L/T cases are disfavored by the courts. Rather than a penalty, the appropriate landlord response should be to follow the seven-day process or possibly to self-remedy with forced placement.

Mike
Michael Geo. F. Davis
Attorney at Law
The MGFD Law Firm PA
Countryside Colonial Center
2753 SR 580, Suite 209
Clearwater, FL 33761-3351
P 727-726-1900
F 727-726-7440
mike@mgfdlaw.com
Primary Eservice: eservice@mgfdlaw.com
www.mgfdlaw.com http://www.mgfdlaw.com/

The information transmitted is intended only for the person or entity to which it is addressed and may contain confidential and/or privileged material. Any review, retransmissions, dissemination or other use of this information by persons or entities other than the intended recipient(s) is unauthorized and prohibited. Any transmission of confidential and/or privileged material to persons or entities other than the intended recipient(s) shall not be construed as a waiver of any privilege or confidence. If you receive this transmission in error, please contact the sender and delete the material. Thank you.

All I am interested in fellow listserv members' input on landlord mandated insurance. I can't find anything in Hauser or any cases directly on point that speak to insurance, insurance charges, or having the landlord listed as the "additional interest or interested party" in the insurance. Further, I also couldn't find anything (or am looking in the wrong places) regarding the issues of the landlord potentially falling into becoming an insurer or selling insurance. I think the key issues that I have seen on landlord mandated insurance lease provisions are: (Assume the facts below are supported by appropriate lease provisions.) 1. Can the landlord require a tenant have liability insurance in a minimum amount? If so, can the landlord require that the landlord be listed as an additional interest (to be notified if the insurance lapses)? 2. If the tenant does not have the required insurance, can the landlord force place the required insurance on behalf of the tenant and pass-through the premium charges to the tenant (as "additional rent")? Assume the landlord is charging the tenant only its actual costs of the insurance. I don't want to get into the quagmire of the landlord making a profit from the insurance. That seems to me to be a clear-cut case of landlord selling insurance which I believe requires a license. 3. If the tenant does not have the required insurance, can the landlord charge a "penalty" (as "additional rent') while the tenant is in non-compliance with the requirement? 1. My thoughts are there aren't any residential landlord/tenant statutes or case law on insurance. Therefore, absent applicable laws in insurance regulation, the landlord can require it. Since the landlord can require it, the landlord can require reasonable conditions, such as additional insured to be informed of policy lapse. I have a concern that a court may find that requiring renter's property insurance to cover the tenant's property would be seen as a benefit to the tenant. Requiring renter's liability insurance may be seen as less for the tenant and more for the benefit of the owner. But a lot of lease provisions are for the landlord's benefit. I also think that, if the landlord does require liability insurance, the landlord should not require a specific company to avoid allegations of "directing" or "collusion". 2. A "forced placement" doesn't seem to be a "penalty" as the tenant is getting a benefit. It can be argued that this is the landlord remedying (after notice to the tenant) akin to the landlord remedying in other rental situation. Single family home rentals, tenant responsible for lawn, pool or spa care, 7Cure with warning that if not remedied landlord will remedy at tenant's expense to avoid damage to lawn, pool or spa. Multifamily rentals, the only thing that came to mind was tenant responsible utilities (electric or water), 7Cure with warning that if not remedied (turned on) landlord will remedy at tenant's expense by putting in landlord's name to avoid damage (mold, dead lawn). 3. In general I think that penalties in L/T cases are disfavored by the courts. Rather than a penalty, the appropriate landlord response should be to follow the seven-day process or possibly to self-remedy with forced placement. Mike Michael Geo. F. Davis Attorney at Law The MGFD Law Firm PA Countryside Colonial Center 2753 SR 580, Suite 209 Clearwater, FL 33761-3351 P 727-726-1900 F 727-726-7440 mike@mgfdlaw.com Primary Eservice: eservice@mgfdlaw.com www.mgfdlaw.com<http://www.mgfdlaw.com/> The information transmitted is intended only for the person or entity to which it is addressed and may contain confidential and/or privileged material. Any review, retransmissions, dissemination or other use of this information by persons or entities other than the intended recipient(s) is unauthorized and prohibited. Any transmission of confidential and/or privileged material to persons or entities other than the intended recipient(s) shall not be construed as a waiver of any privilege or confidence. If you receive this transmission in error, please contact the sender and delete the material. Thank you.

Harry Heist

Thu, Oct 24, 2019 10:31 PM

The additional interest is certainly allowed as all it is would be
notification of a lapse. "Additional interest" and "additional insured" are
very different,

I have many of the same questions as Mike.

Interestingly, please see the bill that was introduced in 2014 but never
went anywhere which almost makes it an "assumption" that renters insurance
can be mandated.

At the time, there were 3 states that specifically stated that renters
insurance could be required but Florida law has always been silent on this.

I have this nagging question as to whether the landlord can require renter's
insurance that has the liability coverage in it for damage to the owner's
property, like fires or floods, or if it is limited to the more basic
policies which only cover the tenant's personal property.

Some managers are including renters insurance in the rent amount and buying
this insurance on behalf of the tenant.

In the mortgage world, if there is a lapse in insurance, the bank can pay
for the insurance and charge the homeowner.

Please see the attached that many managers use where I never felt
comfortable saying it was legal or not.

Harry

LAW OFFICES OF
HEIST, WEISSE & WOLK P.A.
PH: 1 800 253 8428
FAX: 1 800 367 9038
"Serving the Property Management Professional"
Website: http://www.evict.com/ www.evict.com
Email: mailto:harry@evict.com harry@evict.com

https://www.facebook.com/pages/Heist-Weisse-Wolk-PA/343965575625870

Visit us on Facebook

THIS E-MAIL MESSAGE IS CONFIDENTIAL, ATTORNEY-CLIENT PRIVILEGED, AND
INTENDED FOR THE PERSONS NAMED ABOVE ONLY. ALL OTHER USE, COPYING, OR
DISTRIBUTION IS STRICTLY PROHIBITED.

From: landten-bounces@lists.flabarrpptl.org
[mailto:landten-bounces@lists.flabarrpptl.org] On Behalf Of Mike Davis
Sent: Thursday, October 24, 2019 6:12 PM
To: 'landten@lists.flabarrpptl.org'
Subject: [RPPTL LandTen] Landlord Mandated Insurance

All

I am interested in fellow listserv members' input on landlord mandated
insurance. I can't find anything in Hauser or any cases directly on point
that speak to insurance, insurance charges, or having the landlord listed as
the "additional interest or interested party" in the insurance. Further, I
also couldn't find anything (or am looking in the wrong places) regarding
the issues of the landlord potentially falling into becoming an insurer or
selling insurance.

I think the key issues that I have seen on landlord mandated insurance lease
provisions are: (Assume the facts below are supported by appropriate lease
provisions.)

 Can the landlord require a tenant have liability insurance in a

minimum amount? If so, can the landlord require that the landlord be listed
as an additional interest (to be notified if the insurance lapses)?

 If the tenant does not have the required insurance, can the landlord

force place the required insurance on behalf of the tenant and pass-through
the premium charges to the tenant (as "additional rent")? Assume the
landlord is charging the tenant only its actual costs of the insurance. I
don't want to get into the quagmire of the landlord making a profit from the
insurance. That seems to me to be a clear-cut case of landlord selling
insurance which I believe requires a license.

 If the tenant does not have the required insurance, can the landlord

charge a "penalty" (as "additional rent') while the tenant is in
non-compliance with the requirement?

My thoughts are there aren't any residential landlord/tenant
statutes or case law on insurance. Therefore, absent applicable laws in
insurance regulation, the landlord can require it. Since the landlord can
require it, the landlord can require reasonable conditions, such as
additional insured to be informed of policy lapse. I have a concern that a
court may find that requiring renter's property insurance to cover the
tenant's property would be seen as a benefit to the tenant. Requiring
renter's liability insurance may be seen as less for the tenant and more for
the benefit of the owner. But a lot of lease provisions are for the
landlord's benefit. I also think that, if the landlord does require
liability insurance, the landlord should not require a specific company to
avoid allegations of "directing" or "collusion".
A "forced placement" doesn't seem to be a "penalty" as the tenant is
getting a benefit. It can be argued that this is the landlord remedying
(after notice to the tenant) akin to the landlord remedying in other rental
situation. Single family home rentals, tenant responsible for lawn, pool or
spa care, 7Cure with warning that if not remedied landlord will remedy at
tenant's expense to avoid damage to lawn, pool or spa. Multifamily rentals,
the only thing that came to mind was tenant responsible utilities (electric
or water), 7Cure with warning that if not remedied (turned on) landlord will
remedy at tenant's expense by putting in landlord's name to avoid damage
(mold, dead lawn).
In general I think that penalties in L/T cases are disfavored by the
courts. Rather than a penalty, the appropriate landlord response should be
to follow the seven-day process or possibly to self-remedy with forced
placement.

Mike

Michael Geo. F. Davis

Attorney at Law

The MGFD Law Firm PA

Countryside Colonial Center

2753 SR 580, Suite 209

Clearwater, FL 33761-3351

P 727-726-1900

F 727-726-7440

mike@mgfdlaw.com

Primary Eservice: eservice@mgfdlaw.com

http://www.mgfdlaw.com/ www.mgfdlaw.com

The information transmitted is intended only for the person or entity to
which it is addressed and may contain confidential and/or privileged
material. Any review, retransmissions, dissemination or other use of this
information by persons or entities other than the intended recipient(s) is
unauthorized and prohibited. Any transmission of confidential and/or
privileged material to persons or entities other than the intended
recipient(s) shall not be construed as a waiver of any privilege or
confidence. If you receive this transmission in error, please contact the
sender and delete the material. Thank you.

The additional interest is certainly allowed as all it is would be notification of a lapse. "Additional interest" and "additional insured" are very different, I have many of the same questions as Mike. Interestingly, please see the bill that was introduced in 2014 but never went anywhere which almost makes it an "assumption" that renters insurance can be mandated. At the time, there were 3 states that specifically stated that renters insurance could be required but Florida law has always been silent on this. I have this nagging question as to whether the landlord can require renter's insurance that has the liability coverage in it for damage to the owner's property, like fires or floods, or if it is limited to the more basic policies which only cover the tenant's personal property. Some managers are including renters insurance in the rent amount and buying this insurance on behalf of the tenant. In the mortgage world, if there is a lapse in insurance, the bank can pay for the insurance and charge the homeowner. Please see the attached that many managers use where I never felt comfortable saying it was legal or not. Harry LAW OFFICES OF HEIST, WEISSE & WOLK P.A. PH: 1 800 253 8428 FAX: 1 800 367 9038 "Serving the Property Management Professional" Website: <http://www.evict.com/> www.evict.com Email: <mailto:harry@evict.com> harry@evict.com <https://www.facebook.com/pages/Heist-Weisse-Wolk-PA/343965575625870> Visit us on Facebook THIS E-MAIL MESSAGE IS CONFIDENTIAL, ATTORNEY-CLIENT PRIVILEGED, AND INTENDED FOR THE PERSONS NAMED ABOVE ONLY. ALL OTHER USE, COPYING, OR DISTRIBUTION IS STRICTLY PROHIBITED. From: landten-bounces@lists.flabarrpptl.org [mailto:landten-bounces@lists.flabarrpptl.org] On Behalf Of Mike Davis Sent: Thursday, October 24, 2019 6:12 PM To: 'landten@lists.flabarrpptl.org' Subject: [RPPTL LandTen] Landlord Mandated Insurance All I am interested in fellow listserv members' input on landlord mandated insurance. I can't find anything in Hauser or any cases directly on point that speak to insurance, insurance charges, or having the landlord listed as the "additional interest or interested party" in the insurance. Further, I also couldn't find anything (or am looking in the wrong places) regarding the issues of the landlord potentially falling into becoming an insurer or selling insurance. I think the key issues that I have seen on landlord mandated insurance lease provisions are: (Assume the facts below are supported by appropriate lease provisions.) 1) Can the landlord require a tenant have liability insurance in a minimum amount? If so, can the landlord require that the landlord be listed as an additional interest (to be notified if the insurance lapses)? 2) If the tenant does not have the required insurance, can the landlord force place the required insurance on behalf of the tenant and pass-through the premium charges to the tenant (as "additional rent")? Assume the landlord is charging the tenant only its actual costs of the insurance. I don't want to get into the quagmire of the landlord making a profit from the insurance. That seems to me to be a clear-cut case of landlord selling insurance which I believe requires a license. 3) If the tenant does not have the required insurance, can the landlord charge a "penalty" (as "additional rent') while the tenant is in non-compliance with the requirement? 1. My thoughts are there aren't any residential landlord/tenant statutes or case law on insurance. Therefore, absent applicable laws in insurance regulation, the landlord can require it. Since the landlord can require it, the landlord can require reasonable conditions, such as additional insured to be informed of policy lapse. I have a concern that a court may find that requiring renter's property insurance to cover the tenant's property would be seen as a benefit to the tenant. Requiring renter's liability insurance may be seen as less for the tenant and more for the benefit of the owner. But a lot of lease provisions are for the landlord's benefit. I also think that, if the landlord does require liability insurance, the landlord should not require a specific company to avoid allegations of "directing" or "collusion". 2. A "forced placement" doesn't seem to be a "penalty" as the tenant is getting a benefit. It can be argued that this is the landlord remedying (after notice to the tenant) akin to the landlord remedying in other rental situation. Single family home rentals, tenant responsible for lawn, pool or spa care, 7Cure with warning that if not remedied landlord will remedy at tenant's expense to avoid damage to lawn, pool or spa. Multifamily rentals, the only thing that came to mind was tenant responsible utilities (electric or water), 7Cure with warning that if not remedied (turned on) landlord will remedy at tenant's expense by putting in landlord's name to avoid damage (mold, dead lawn). 3. In general I think that penalties in L/T cases are disfavored by the courts. Rather than a penalty, the appropriate landlord response should be to follow the seven-day process or possibly to self-remedy with forced placement. Mike Michael Geo. F. Davis Attorney at Law The MGFD Law Firm PA Countryside Colonial Center 2753 SR 580, Suite 209 Clearwater, FL 33761-3351 P 727-726-1900 F 727-726-7440 mike@mgfdlaw.com Primary Eservice: eservice@mgfdlaw.com <http://www.mgfdlaw.com/> www.mgfdlaw.com The information transmitted is intended only for the person or entity to which it is addressed and may contain confidential and/or privileged material. Any review, retransmissions, dissemination or other use of this information by persons or entities other than the intended recipient(s) is unauthorized and prohibited. Any transmission of confidential and/or privileged material to persons or entities other than the intended recipient(s) shall not be construed as a waiver of any privilege or confidence. If you receive this transmission in error, please contact the sender and delete the material. Thank you.

pat (at) hoganlegalservices.com

Mon, Dec 2, 2019 6:15 PM

Thank you for any/all thoughts and input.

Patrick T. Hogan, Esq.

Hogan Legal Services, P.A.

Pat@HoganLegalServices.com

(941) 952-5000

This message may contain information that is attorney-client privileged, attorney work product or otherwise confidential. If you are not an intended recipient, use and disclosure of this message are prohibited.

If you received this transmission in error, please notify the sender by reply e-mail and delete the message and any attachments.

From: landten-bounces@lists.flabarrpptl.org landten-bounces@lists.flabarrpptl.org on behalf of Harry Heist harry@evict.com
Sent: Thursday, October 24, 2019 6:31 PM
To: 'RPPTL Landlord Tenant Committee' landten@lists.flabarrpptl.org
Subject: Re: [RPPTL LandTen] Landlord Mandated Insurance

The additional interest is certainly allowed as all it is would be notification of a lapse. “Additional interest” and “additional insured” are very different,

I have many of the same questions as Mike.

Interestingly, please see the bill that was introduced in 2014 but never went anywhere which almost makes it an “assumption” that renters insurance can be mandated.

At the time, there were 3 states that specifically stated that renters insurance could be required but Florida law has always been silent on this.

I have this nagging question as to whether the landlord can require renter’s insurance that has the liability coverage in it for damage to the owner’s property, like fires or floods, or if it is limited to the more basic policies which only cover the tenant’s personal property.

Some managers are including renters insurance in the rent amount and buying this insurance on behalf of the tenant.

In the mortgage world, if there is a lapse in insurance, the bank can pay for the insurance and charge the homeowner.

Please see the attached that many managers use where I never felt comfortable saying it was legal or not.

Harry

LAW OFFICES OF
HEIST, WEISSE & WOLK P.A.
PH: 1 800 253 8428
FAX: 1 800 367 9038
"Serving the Property Management Professional"
Website: www.evict.com http://www.evict.com/
Email: harry@evict.com mailto:harry@evict.com

[cid:image002.png@01D58A99.3A8016C0]https://www.facebook.com/pages/Heist-Weisse-Wolk-PA/343965575625870

Visit us on Facebook

THIS E-MAIL MESSAGE IS CONFIDENTIAL, ATTORNEY-CLIENT PRIVILEGED, AND INTENDED FOR THE PERSONS NAMED ABOVE ONLY. ALL OTHER USE, COPYING, OR DISTRIBUTION IS STRICTLY PROHIBITED.

From: landten-bounces@lists.flabarrpptl.org [mailto:landten-bounces@lists.flabarrpptl.org] On Behalf Of Mike Davis
Sent: Thursday, October 24, 2019 6:12 PM
To: 'landten@lists.flabarrpptl.org'
Subject: [RPPTL LandTen] Landlord Mandated Insurance

All

I am interested in fellow listserv members’ input on landlord mandated insurance. I can’t find anything in Hauser or any cases directly on point that speak to insurance, insurance charges, or having the landlord listed as the “additional interest or interested party” in the insurance. Further, I also couldn’t find anything (or am looking in the wrong places) regarding the issues of the landlord potentially falling into becoming an insurer or selling insurance.

I think the key issues that I have seen on landlord mandated insurance lease provisions are: (Assume the facts below are supported by appropriate lease provisions.)

 Can the landlord require a tenant have liability insurance in a minimum amount?  If so, can the landlord require that the landlord be listed as an additional interest (to be notified if the insurance lapses)?

 If the tenant does not have the required insurance, can the landlord force place the required insurance on behalf of the tenant and pass-through the premium charges to the tenant (as “additional rent”)?  Assume the landlord is charging the tenant only its actual costs of the insurance.  I don’t want to get into the quagmire of the landlord making a profit from the insurance.  That seems to me to be a clear-cut case of landlord selling insurance which I believe requires a license.

 If the tenant does not have the required insurance, can the landlord charge a “penalty” (as “additional rent’) while the tenant is in non-compliance with the requirement?

My thoughts are there aren’t any residential landlord/tenant statutes or case law on insurance. Therefore, absent applicable laws in insurance regulation, the landlord can require it. Since the landlord can require it, the landlord can require reasonable conditions, such as additional insured to be informed of policy lapse. I have a concern that a court may find that requiring renter's property insurance to cover the tenant's property would be seen as a benefit to the tenant. Requiring renter's liability insurance may be seen as less for the tenant and more for the benefit of the owner. But a lot of lease provisions are for the landlord’s benefit. I also think that, if the landlord does require liability insurance, the landlord should not require a specific company to avoid allegations of “directing” or “collusion”.
A “forced placement” doesn’t seem to be a “penalty” as the tenant is getting a benefit. It can be argued that this is the landlord remedying (after notice to the tenant) akin to the landlord remedying in other rental situation. Single family home rentals, tenant responsible for lawn, pool or spa care, 7Cure with warning that if not remedied landlord will remedy at tenant’s expense to avoid damage to lawn, pool or spa. Multifamily rentals, the only thing that came to mind was tenant responsible utilities (electric or water), 7Cure with warning that if not remedied (turned on) landlord will remedy at tenant’s expense by putting in landlord’s name to avoid damage (mold, dead lawn).
In general I think that penalties in L/T cases are disfavored by the courts. Rather than a penalty, the appropriate landlord response should be to follow the seven-day process or possibly to self-remedy with forced placement.

Mike

Michael Geo. F. Davis

Attorney at Law

The MGFD Law Firm PA

Countryside Colonial Center

2753 SR 580, Suite 209

Clearwater, FL 33761-3351

P 727-726-1900

F 727-726-7440

mike@mgfdlaw.com mailto:mike@mgfdlaw.com

Primary Eservice: eservice@mgfdlaw.com mailto:eservice@mgfdlaw.com

www.mgfdlaw.com http://www.mgfdlaw.com/

Landlords must include language in leases to have late fees considered as additional rent. What do mobile home park owners have to do to have rule violation fines considered as additional rent? Does this also have to be in the lease or must it be in a prospectus amendment or could a landlord just publish a notice of rule change and go forward with the rule violation fine and include this amount in a 3 or 5 day notice just as with late rent? Thank you for any/all thoughts and input. Patrick T. Hogan, Esq. Hogan Legal Services, P.A. Pat@HoganLegalServices.com (941) 952-5000 This message may contain information that is attorney-client privileged, attorney work product or otherwise confidential. If you are not an intended recipient, use and disclosure of this message are prohibited. If you received this transmission in error, please notify the sender by reply e-mail and delete the message and any attachments. ________________________________ From: landten-bounces@lists.flabarrpptl.org <landten-bounces@lists.flabarrpptl.org> on behalf of Harry Heist <harry@evict.com> Sent: Thursday, October 24, 2019 6:31 PM To: 'RPPTL Landlord Tenant Committee' <landten@lists.flabarrpptl.org> Subject: Re: [RPPTL LandTen] Landlord Mandated Insurance The additional interest is certainly allowed as all it is would be notification of a lapse. “Additional interest” and “additional insured” are very different, I have many of the same questions as Mike. Interestingly, please see the bill that was introduced in 2014 but never went anywhere which almost makes it an “assumption” that renters insurance can be mandated. At the time, there were 3 states that specifically stated that renters insurance could be required but Florida law has always been silent on this. I have this nagging question as to whether the landlord can require renter’s insurance that has the liability coverage in it for damage to the owner’s property, like fires or floods, or if it is limited to the more basic policies which only cover the tenant’s personal property. Some managers are including renters insurance in the rent amount and buying this insurance on behalf of the tenant. In the mortgage world, if there is a lapse in insurance, the bank can pay for the insurance and charge the homeowner. Please see the attached that many managers use where I never felt comfortable saying it was legal or not. Harry LAW OFFICES OF HEIST, WEISSE & WOLK P.A. PH: 1 800 253 8428 FAX: 1 800 367 9038 "Serving the Property Management Professional" Website: www.evict.com<http://www.evict.com/> Email: harry@evict.com<mailto:harry@evict.com> [cid:image002.png@01D58A99.3A8016C0]<https://www.facebook.com/pages/Heist-Weisse-Wolk-PA/343965575625870> Visit us on Facebook THIS E-MAIL MESSAGE IS CONFIDENTIAL, ATTORNEY-CLIENT PRIVILEGED, AND INTENDED FOR THE PERSONS NAMED ABOVE ONLY. ALL OTHER USE, COPYING, OR DISTRIBUTION IS STRICTLY PROHIBITED. From: landten-bounces@lists.flabarrpptl.org [mailto:landten-bounces@lists.flabarrpptl.org] On Behalf Of Mike Davis Sent: Thursday, October 24, 2019 6:12 PM To: 'landten@lists.flabarrpptl.org' Subject: [RPPTL LandTen] Landlord Mandated Insurance All I am interested in fellow listserv members’ input on landlord mandated insurance. I can’t find anything in Hauser or any cases directly on point that speak to insurance, insurance charges, or having the landlord listed as the “additional interest or interested party” in the insurance. Further, I also couldn’t find anything (or am looking in the wrong places) regarding the issues of the landlord potentially falling into becoming an insurer or selling insurance. I think the key issues that I have seen on landlord mandated insurance lease provisions are: (Assume the facts below are supported by appropriate lease provisions.) 1) Can the landlord require a tenant have liability insurance in a minimum amount? If so, can the landlord require that the landlord be listed as an additional interest (to be notified if the insurance lapses)? 2) If the tenant does not have the required insurance, can the landlord force place the required insurance on behalf of the tenant and pass-through the premium charges to the tenant (as “additional rent”)? Assume the landlord is charging the tenant only its actual costs of the insurance. I don’t want to get into the quagmire of the landlord making a profit from the insurance. That seems to me to be a clear-cut case of landlord selling insurance which I believe requires a license. 3) If the tenant does not have the required insurance, can the landlord charge a “penalty” (as “additional rent’) while the tenant is in non-compliance with the requirement? 1. My thoughts are there aren’t any residential landlord/tenant statutes or case law on insurance. Therefore, absent applicable laws in insurance regulation, the landlord can require it. Since the landlord can require it, the landlord can require reasonable conditions, such as additional insured to be informed of policy lapse. I have a concern that a court may find that requiring renter's property insurance to cover the tenant's property would be seen as a benefit to the tenant. Requiring renter's liability insurance may be seen as less for the tenant and more for the benefit of the owner. But a lot of lease provisions are for the landlord’s benefit. I also think that, if the landlord does require liability insurance, the landlord should not require a specific company to avoid allegations of “directing” or “collusion”. 2. A “forced placement” doesn’t seem to be a “penalty” as the tenant is getting a benefit. It can be argued that this is the landlord remedying (after notice to the tenant) akin to the landlord remedying in other rental situation. Single family home rentals, tenant responsible for lawn, pool or spa care, 7Cure with warning that if not remedied landlord will remedy at tenant’s expense to avoid damage to lawn, pool or spa. Multifamily rentals, the only thing that came to mind was tenant responsible utilities (electric or water), 7Cure with warning that if not remedied (turned on) landlord will remedy at tenant’s expense by putting in landlord’s name to avoid damage (mold, dead lawn). 3. In general I think that penalties in L/T cases are disfavored by the courts. Rather than a penalty, the appropriate landlord response should be to follow the seven-day process or possibly to self-remedy with forced placement. Mike Michael Geo. F. Davis Attorney at Law The MGFD Law Firm PA Countryside Colonial Center 2753 SR 580, Suite 209 Clearwater, FL 33761-3351 P 727-726-1900 F 727-726-7440 mike@mgfdlaw.com<mailto:mike@mgfdlaw.com> Primary Eservice: eservice@mgfdlaw.com<mailto:eservice@mgfdlaw.com> www.mgfdlaw.com<http://www.mgfdlaw.com/> The information transmitted is intended only for the person or entity to which it is addressed and may contain confidential and/or privileged material. Any review, retransmissions, dissemination or other use of this information by persons or entities other than the intended recipient(s) is unauthorized and prohibited. Any transmission of confidential and/or privileged material to persons or entities other than the intended recipient(s) shall not be construed as a waiver of any privilege or confidence. If you receive this transmission in error, please contact the sender and delete the material. Thank you.