Tenant agrees and acknowledges that it shall provide to Landlord evidence of Rental Insurance by the time of Tenant’s taking possession of the Property. Tenant also agrees that it shall provide evidence of Rental Insurance to Landlord at the beginning of each Agreement renewal period, if applicable.

Tenant agrees and acknowledges that Tenant assumes all liability for personal injury, property damage or loss, and insurable risk associated with the Property.

Renter’s Insurance Requirements. Tenant agrees that it will comply with the following Renter’s Insurance requirements and that failure to satisfy said requirements constitutes a breach of this Agreement:

a. The Renter’s Insurance policy chosen by Tenant must fall under the HO-4 policy category, including at least $100,000.00 in liability coverage for Tenant's legal liability for damage to Lessor’s property for no less than the following causes of loss: fire, smoke, explosion, backup or overflow of sewer, drain or sump, and water damage (“Required Insurance”). Said policy should also include some coverage for Tenant’s personal property.

If at any time Lessee does not have Required Insurance, Lessee is in breach of the Lease and Lessor shall have, in addition to any other rights under the Lease, the right but not the obligation to purchase Required Insurance coverage protecting the sole interest of the Lessor and seek contractual reimbursement from the Lessee for all costs and expenses associated with such purchase.  

Lessee may obtain Required Insurance or broader coverage from an insurance agent or insurance company of Lessee’s choice.  If Lessee furnishes evidence of such insurance and maintains the insurance for the duration of the Lease, then nothing more is required.  If Lessee does not maintain Required Insurance, the insurance requirement of this Lease may be satisfied by Lessor, who may purchase such coverage through the Lessor’s Legal Liability Insurance Policy (“LLIP”).  The coverage provided under the LLIP will provide the Required Insurance coverage listed above.  An amount equal to the total cost to the Lessor for the LLIP coverage shall be charged to Lessee by the Lessor as a recoverable expense under the Lease.  Some important points of this coverage, which Lessee should understand are: 

1. LLIP is designed to fulfill the insurance requirement of the Lease.  Lessor is the Insured under the LLIP.  This is single interest master insurance policy.  Lessee is not an Insured, Additional Insured or beneficiary under the LLIP.  All loss payments are made to the Lessor.  

2. LLIP coverage is NOT personal liability insurance or renters insurance. LLIP does not cover the Lessee’s personal property (contents), additional living expenses or liability arising out of bodily injury or property damage to any third party.  If Lessee requires any of these coverages, then Lessee should contact an insurance agent or insurance company of Lessee’s choice to obtain personal liability insurance or renters insurance to protect Lessee’s interests.  

3. Coverage under the LLIP may be more expensive than the cost of Required Insurance obtainable by Lessee elsewhere.  At any time, Lessee may contact an insurance agent or insurance company of their choice for insurance options to satisfy the Required Insurance under this Lease.  

4. If Lessee has purchased Renters Insurance and at any time allows such Renters Insurance to lapse in breach of the Lease Agreement, Lessor may purchase Lessor Insurance without notice and add the total cost associated therewith to Lessee’s monthly rent payment.

5. Licensed insurance agents may receive a commission on the LLIP.  

6. The total cost to the Lessee for the Lessor obtaining LLIP shall be $10.50 per month, subject to no proration. This is an amount equal to the actual premium charge to the Lessor including any premium taxes and fees due to state governing bodies. Additionally, an Administration Fee in the amount of $4.50 to be retained by the Lessor for processing and handling will be charged. 

7. In the event that loss or damage to Lessor’s property exceeds the amount of Required Insurance, Lessee shall remain contractually liable to Lessor for such amount.  In the event of liability to any other party for bodily injury or property damage, Lessee shall remain liable to such other party.

8. It shall be the Lessee’s duty to notify Lessor of any subsequent purchase of Renters Insurance.

As used in this Addendum: “Lease” may be interchangeable with “Lease Agreement”; “Lessee” may be interchangeable with “Resident” or “Tenant”, and “Lessor” may be interchangeable with “Landlord” or “Owner”. 

Scheduling of the premises under the LLIP is not mandatory and Lessee may purchase Required Insurance from an insurance agent or insurance company of Lessee’s choice at any time and coverage under the LLIP will be terminated by the Lessor upon written request by Lessee.