Requiring Tenant Insurance

In light of the recent tornado that destroyed the park in Sedalia Missouri I began to think through the reality of “What if that was my park?”.

I have insurance that covers all of my park owned homes and income losses for a period of time. I am comfortable with insurance on those homes.

What about the tenant owned homes? Most in my park are 70’s and 80’s and I bet very few owners insure them. So if we are wiped out by a tornado, fire, etc my guess is the tenants will just walk away without replacing trailers, and probably leave me a huge cleanup mess. I couldn’t blame them, most couldn’t afford to do anything different.

I have no provision to force tenants to insure their trailers and list me or the park as a beneficiary. I’m not sure if that’s even legal. What is everybody’s thought on this? Or, can I insure for them as an additional safeguard?

To add more reality to this concern, I have been negotiating on a park in Missouri (not the destroyed one) and have never really been concerned about tornadoes but now its on the top of my mind. The park has been around for years without any issues, but you never know what’s going to happen!