Renting the chapter to a third-party
The insurance company underwriters have accepted the sorority class of business based upon the exposures that are normally present for housing, such as member-only female tenants, no alcohol allowed on the premises and having a House Director live on the property. The coverages provided under your organization’s national insurance program have been designed and priced based upon these guidelines.
The House Corporation may desire, on occasion, to rent out the chapter property to a third party. There are certain parameters that must be in place in order for the insurance carrier to consider supporting the arrangement, which include the following:
- Lessee is a single sex organization, not individual tenants.
- Lessee must carry $2,000,000 General Liability coverage.
- Lessee must include the House Corporation and the Fraternity as primary Additional Insureds.
- Lessee must provide a Certificate of Insurance annually to the Landlord and MJ Insurance.
- An adult supervisor needs to live on the premises.
- Alcohol is prohibited on the premises.
- Candles are prohibited on the premises.
- Lessee must complete the MJ Self Inspection Property Checklist each semester.
Please contact us to discuss any potential rental arrangement you may be considering, and we can determine if the arrangement is acceptable from an insurance and risk management standpoint. We will talk through the plans, discuss the exposures involved and help you determine the best course of action and discuss other risk reduction/management techniques you may want to consider.