3 Roommates requiring renters insurance

We are 3 roommates renting a condo in New York City. The owner/landlord of the condo is an LLC. The landlord has requested we get renters insurance. We got renters insurance from Allstate, with 2 roommates on 1 policy and the other roommate on another policy. The landlord’s lawyer is saying that the three of us would not be covered under personal renters insurance because we are in effect a partnership, and therefore should get business insurance. All the insurance brokers I spoke to say we should be covered under the policy we bought. Are we covered under personal renters insurance?

Asked on June 26, 2009 under Real Estate Law, New York

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

Are you using the apartment for a business or as a home?  If you are using it as a home then "business insurance" seems to be a ridiculous request.   A business is insured based upon what type of business it is.  Roommates don't constitute a business relationship.

Does your lease state any specifics as to what the renters insurance is to cover?  I'm guessing that the lawyer is worried about damage to the apartment and not just coverage for your contents.  Ask your Allstate agent to point out the provision in the policy that states what your insurance covers.  Read this along with the requirements under the lease.  The LLC should also have insurance coverage for the apartment over and above your insurance.   If the landlord's lawyer insists ask for the reasons in writing.  Then seek your own legal consultation on the issue.  One well places letter from attorney to attorney may be all you need.  Look here at attorneypages.com for help.  


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.