REQUIRED INSURANCE ADDENDUM TO LEASE AGREEMENT [SAMPLE]
This Addendum is attached to and becomes a part of the Residential Lease Agreement. For the duration of the Lease,
Lessee is required to maintain and provide the following minimum required insurance coverage:
● $100,000 Limit of Liability for Lessee’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”).
Lessee is required to furnish Lessor with evidence of Required Insurance prior to occupancy of leased premises and at
the time of each lease renewal period. 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. This may be referred to as “force placed
insurance”.
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 forced placed insurance. 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 ($10.50) per month, subject to no
proration. This is an amount equal to the actual premium charge to the Lessor including any premium taxes
and fees due to state governing bodies. Additionally, an Administration Fee in the amount of ______ Dollars
($____) 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.
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Lessee Signature Date
AppFolio, Inc. renders no legal opinion with respect to any Addendum to the landlord’s lease agreements. The attached is for discussion purposes
only. The landlord should obtain their own legal counsel opinion prior to utilizing any Addendum. Any associated admin fees must be disclosed on
this addendum.
