Insurance

Should I add a guarantor as an additional insured on my renter’s policy?

Hello r/insurance – big fan; long time, first time, etc.

I am in Chicago, Illinois. I have recently signed a lease for an apartment, and one of the terms of the lease is that I carry Renter’s Insurance with $100,000 liability coverage, and list the building owner as an additional insured.

I also had to have a guarantor (my mom) “vouch” for me with the leasing company – they wouldn’t rent to me unless she acted as my guarantor. My question is this: should I list the guarantor (my mom) as another additional insured on my renter’s policy?

What are the pros and cons? I assume the pro is that my mom will be indemnified if someone gets hurt on the property and decides to sue, but would she even be liable at all? I assume the con is that the policy will cost more money? Is there anything I’m overlooking/haven’t considered?

Any help would be most appreciated.

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7 Comments

  1. If she is not on the lease, then no, she should not be on the policy. Sounds like your mother is just guaranteeing that rent will be made if missed. Like cosigning a car loan. The registered driver is on the policy, not whoever is on the hook for missed payments. There is no pro listing her on the policy. She is not liable for anything that happens, except paying your rent when you don’t.

  2. I am not a lawyer and this is not legal advice. Check the laws in your jurisdiction.

    That being said, my personal belief is that it’s a good idea to add her. If she is qualified as a guarantor, it is unlikely that adding her as an additional insured will have any serious impact on your premium. Additionally, it is my personal belief that as a guarantor, she will be liable in many of the situations in which you would be liable.

  3. Additional insured, no. Additional interest, sure. There’s a difference between the two.

  4. I would also post this over on r/legaladvice. I’m not in insurance, and I don’t know if this is commonplace, but I would want to know if there’s any cons to having your landlord as an insured on your renter’s liability policy, or if your lease terms need any additional clauses included to protect you; or if you need to state somewhere in the lease contract that the insurance only covers him and not anyone else representing him (like a repair/handyman); or that you must be present anytime he enters your apartment, etc. Also include the number of units in your building, is the apartment in a 2-3 or 4 apartment building, and the city & state.

    You could also call your insurance company to ask how common this is, and if they’d ever heard of insuring a guarantor. I’d ask legaladvice about even having a guarantor, like what’s that for, and what are the cons of that? Are you under 18? Unsteady income, or lack of credit history? College student? I’d also think you’d want the “terms of the guarantor” spelled out, like what exactly is this guarantor guaranteeing specifically, and what are the dollar limits of this guarantor’s liability? I’d get a copy of the lease and read it carefully before signing.

  5. I would also post this over on r/legaladvice. I’m not in insurance, and I don’t know if this is commonplace, but I would want to know if there’s any cons to having your landlord as an insured on your renter’s liability policy, or if your lease terms need any additional clauses included to protect you; or if you need to state somewhere in the lease contract that the insurance only covers him and not anyone else representing him (like a repair/handyman); or that you must be present anytime he enters your apartment, etc. Also include the number of units in your building, is the apartment in a 2-3 or 4 apartment building, and the city & state.

    You could also call your insurance company to ask how common this is, and if they’d ever heard of insuring a guarantor. I’d ask legaladvice about even having a guarantor, like what’s that for, and what are the cons of that? Are you under 18? Unsteady income, or lack of credit history? College student? I’d also think you’d want the “terms of the guarantor” spelled out, like what exactly is this guarantor guaranteeing specifically, and what are the dollar limits of this guarantor’s liability? I’d get a copy of the lease and read it carefully before signing.

  6. I am not a lawyer and this is not legal or professional advice. Check the laws in your jurisdiction.

    That being said, my personal belief is that it’s a good idea to add her. If she is qualified as a guarantor, it is unlikely that adding her as an additional insured will have any serious impact on your premium. Additionally, it is my personal belief that as a guarantor, she will be liable in many of the situations in which you would be liable.

    Your broker should be able to quote you both versions of the policy and should explain your options.

  7. I would also post this over on r/legaladvice. I’m not in insurance, and I don’t know if this is commonplace, but I would want to know if there’s any cons to having your landlord as an insured on your renter’s liability policy, or if your lease terms need any additional clauses included to protect you; or if you need to state somewhere in the lease contract that the insurance only covers him and not anyone else representing him (like a repair/handyman); or that you must be present anytime he enters your apartment, etc. Also include the number of units in your building, is the apartment in a 2-3 or 4 apartment building, and the city & state.

    You could also call your insurance company to ask how common this is, and if they’d ever heard of insuring a guarantor. I’d ask legaladvice about even having a guarantor, like what’s that for, and what are the cons of that? Are you under 18? Unsteady income, or lack of credit history? College student? I’d also think you’d want the “terms of the guarantor” spelled out, like what exactly is this guarantor guaranteeing specifically, and what are the dollar limits of this guarantor’s liability? I’d get a copy of the lease and read it carefully before signing.

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