As a landlord/insurance agent myself, RedShirt is correct. If a tenant did that,
it MAY be covered by my policy, but I'm not going to file that claim on my
policy--I'm going to charge the tenant (they are responsible and need to
pay for that). If I file a claim, the tenant only pays my deductible, while my
premium increases for at least the next 5 years (while some companies will
cancel you for too many claims). It could also affect the value and salability
of my property, as the potential buyer may face higher insurance costs as well
(and in extreme cases it could be 'uninsurable' with some companies).
This is part of the reason some landlords REQUIRE renters insurance.
It also covers you for liability to other people/things--not just the property.
For example, say your same child went outside after plugging the sink and lit
fireworks and burned down the neighbors house (perhaps killing someone inside
that couldn't get out). Who is going to pay for that? Every
renter should have insurance, and a good agent can get you properly covered for
less than the $18/month or so mentioned in the article.
RedShirt said: "To "Victor" go to the Geico web site and read their
"Why Buy Renters Insurance?" page. Safco insurance also has a nice page
titled "Renters Insurance Features and Coverage Options" where they go
over what is covered."...and what are these sights and article
selling???I was just over at RJ Reynolds Sight and they said Smoking
is safe and had an expert quoting this, the expert was Rush, but hey it was in
To "Victor" go to the Geico web site and read their "Why Buy Renters
Insurance?" page. Safco insurance also has a nice page titled "Renters
Insurance Features and Coverage Options" where they go over what is
covered.Both state that it gives you liability coverage, covers you
for water damage. So, my scenario is valid and possible.Lets
consider something simple. You live in a basement apartment, and a pipe springs
a leak. The owner has coverage for the structure, but your stuf has no
coverage. You lose your TV, couch, and beds. Plus you have no place to stay
while looking for a new place.Renter's insurance covers that.
Just to clarify, homeowner's insurance will cover damage to the actual
home. Renter's insurance will cover damage to the renter's personal
items. As what I think rogerpack2 is implying, unless you have expensive items
in your apartment as a renter, is renter's insurance really worth it? I
suspect no if you are a single college student and your laptop is your most
expensive belonging. Now if it is a home being rented and you have lots of
expensive things then maybe it is worth it. In most cases, you would not be
renting a home if you were wealthy enough to own thousands of dollars of
expensive items, IMNSHO.
RedShirt, Are you saying the home owner's insurance would not cover that?
What may happen is the homeowner requires the renter to pay the deductable on
the homeowner's claim. A deductible is normally not going to break the bank
any more than a yearly renter's insurance premium. I could see
your scenario being an issue only if the insurance company decided to exercise
subrogation rights and pursue prosecution against the renter to try and make the
renter responsible for the claim. But how often does that really occur? Most
insurance companies will not take this sort of action against a renter because
they know they will not see a penny and just lose more money on legal fees. If
it is a small claim, the insurance company will just pay it. If it is a large
claim, they know they'll never get paid and not prosecute. Possible on rare
circumstances maybe, but generally no.
To "rogerdpack2" it protects more than your TV. Imagine that your child
decides to plug the kitchen sink in your rental, and floods your apartment.
Without the insurance you would have to pay for the damage out of pocket. With
insurance you are covered for that type of damage.
$15/month to protect your...$200 TV? hmm...