- It is really easy to do $50-100k worth of damage to an apartment or apartment building, even inadvertently. Accidentally knocking the hose off of a dishwasher could send a flood of hot water down to every unit below yours, wrecking ceilings, electrical and hardwood floors. Since most tenants don’t have that much money, the landlord is often powerless to sue unless the tenant has insurance.
- Landlords want another "deep pocket": Your friend should sue your renter's insurance company first when her toddler bashes his head into the corner of your glass coffee table. Even if your landlord isn't remotely liable, defending a lawsuit often costs more than settling it, especially in Brooklyn and the Bronx, where juries often do strange things.
- Rent-stabilized leases must be renewed under ‘the same terms and conditions’ as the original one. So they become this veritable grab bag of unpleasant lease clauses; anything that remotely benefits the landlord gets stuffed into the lease, and if you want the apartment, you can’t say no. Plus, if you drop coverage, it gives the landlord an easy way to try to evict you. This is why you see requirements for renter's insurance in areas that have rent regulations, and where, accordingly, new tenants have basically no bargaining power.
- The Bozo Factor: Basically, if something breaks in your apartment, your landlord doesn’t want you to bother him about it. ‘Take it up with your insurance company’ is a great way to dismiss annoying tenants.
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