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Which state do you live in? You should check for your state's laws. However, I would deem these conditions as uninhabitable and think that your state should have a clause where you can leave your current rental in such a case, even under a lease. I am aware California has such a rule.

We live in an apartment complex in Northern California. Since the past 2 lease terms, our resident manager has refused to let us renew our lease, until we don't produce a copy of renter's insurance. They say its mandatory that we have it- that they've had problems in the past that they've had to...