If the management of my apartment changes and requires a higher liability renter’s insurance, is that a way to get out of my lease?
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If the management of my apartment changes and requires a higher liability renter’s insurance, is that a way to get out of my lease?
Page 2, Paragraph 14 of lease says that lease can’t change except for what is allowed in Paragraph 17. Paragraph 17 says as long as it is reasonable and doesn’t affect dollar amount on page 1. Page 1 had a clause stating renter’s insurance is required but it did not list how much liability is required. The new management requires 100,000.
Asked on April 18, 2012 under Real Estate Law, Illinois
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
"Reasonable" is a standard that is context specific and more than somewhat subjective. What is "reasonable" for an apartment like yours, in the area in which it is located, is best judged by what like or similarly situated tenants have as renter's insurance, as well as by what insurance professionals (e.g. agents or brokers) would recommend for your premises. To get a sense for what is reasonable, speak to other tenants in the same or similar nearby buildings, and also speak with a broker. What is reasonable for you would not be reasonable for someone living in a different real estate market, different size apartment, or different monthly rental value apartment.
However, even if the amount of coverage is excessive, that probably would not allow you to terminate the lease, though you may be able to challenge this specific requirement. That is because a lease may only be terminated without penalty for a "material," or significant violation. It is very possible that the extra cost of the additional coverage is so small, compared to your annual rent, that it would not be considered material. For example: say your rent is $1,000 per month, or $12,000 per year. Say that buying the additional coverage would cost you an extra $400 per year. Given that $400 is only 3% of your annual rent, it's unlikely that a court would consider that a material change or breach.
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