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All of you tenants who don't seem to know that you must keep renter's insurance if you want your belongings protected against theft or damage: you can't just submit a claim that you lost $4,000 or $10,000 worth of stuff or $1200 worth of meat in the freezer.
You must keep some of your receipts and it is a very good idea to have photos of your belongings, all stored in a safe place.
The insurance company isn't going to take your word for it that you bought a $3,500 big screen 2 days before you were robbed or that you owned $20,000 worth of brand new designer clothes the day of the fire, or that you own $10,000 worth of computer equipment
If you pay for the big items by credit card, you can get copies of receipts from your credit card company. But also, take photos of all your belongings in your house or apartment and photos of your stuff in the storage locker. Have a record of serial numbers for electronics and tools.
The insurance company is not picking on tenants. Homeowners must also be able to provide that sort of proof for big ticket items.
The insurance company will pay for everything lost in a fire and they don't need receipts for things like your paper towels or ordinary cookware. But if you want to claim expensive items, you will need proof.
In fact, if you have really expensive items, like grandmother's sapphire tiara or a Van Gogh painting, the insurance doesn't actually cover that sort of thing unless you buy a rider and the insurance company has photos and an appraisal of the valuable item.
As always, with insurance, you talk to your agent about what is covered and what is not. You also sit down and read your policy when it arrives.
Excellent advice. You reminded me to take a new video of my apartment. I have receipts for everything in email form, so I can access them even if my stuff completely burns to smithereens. But, a video would be even better, and can just be uploaded somewhere free like vimeo.com, and just make the settings private.
Another thing tenants don't often know is that they need a special rider, normally, for loss of use. So, if you have to go stay in a hotel after a flood, etc., the insurance company will pay for it. Landlords don't have to give you anything for your stuff or hotel stay, normally, except a rent credit for your normal amount of rent. And the lease usually contains a clause that just says the lease is terminated if the unit is destroyed - so you might not even get any kind of rent credit.
I also have a separate rider that covers me for flooding caused by floods inside my unit, in case the pipes get backed up or my neighbor upstairs overflows their tub. This isn't covered under the generic policy, either.
I have earthquake coverage, too, being in CA.
And, my premium is only around $25/month with all of these riders. Renter's insurance is cheap. The exception for me was flood insurance that would cover me in case of a tsunami. That was too expensive to justify.
But, you usually have to ask about every possible coverage available. Most insurance companies are all online now, or have call centers with people who basically just take your order. My experience is that I had to grill them on all coverage available. And then reading the policies they sent me to be sure it was all there. It's so automated now. It's not like the old days where agents kept trying to sell you stuff you didn't need LOL. Nowadays, you have to insist they don't move on to the next caller.
And it really pays to shop around. I have Geico for my auto insurance, and have had them for years, but they have terrible rates on renter's insurance, even though I'm also a loyal auto customer. I actually got my best rate as an AARP member with The Hartford, and when I signed up I asked The Hartford if I have to stay a member of AARP to keep the discount, and they said no. So, I then canceled my AARP membership. And the funny thing was, The Hartford couldn't make me a better deal on auto insurance. It doesn't always pay to have all policies under one company.
Yep, Jewelry, firearms, and high end electronics are notable things to ask about specific riders for. But, if you have 20 pairs of Tory Burch Shoes, take a picture.
My leases state that "Tenant Liability/Renter's Insurance: Tenant assumes all liability for personal injury, property damage or loss, and insurable risks except for that caused by Landlord's negligence. Landlord strongly recommends that Tenant obtain and keep renter's in full force and effect for the full term of this Lease Agreement."
Also, under pet section, my leases state that tenant "is required to maintain a liability insurance policy to cover any liability incurred due to pets with a minimum of $25,000 coverage and cause Landlord to become an "additional insured" under the policy.
Note that this is a standard lease form provided by my state's association of Realtors. Landlords should particularly note the second quote if you rent to tenants with pets.
To sum it up, all renters who have any but the most insignificant personal property should carry renter's insurance.
Additional note for landlords: I have special landlord insurance that includes coverage for loss of use of property due to a covered risk. This is intended to reimburse me for my reimbursing tenants for alternate living quarters like for example there is a fire and the house is not liveable for a period of time.
Quote:
Originally Posted by JONOV
Yep, Jewelry, firearms, and high end electronics are notable things to ask about specific riders for. But, if you have 20 pairs of Tory Burch Shoes, take a picture.
My leases state that "Tenant Liability/Renter's Insurance: Tenant assumes all liability for personal injury, property damage or loss, and insurable risks except for that caused by Landlord's negligence. Landlord strongly recommends that Tenant obtain and keep renter's in full force and effect for the full term of this Lease Agreement."
Also, under pet section, my leases state that tenant "is required to maintain a liability insurance policy to cover any liability incurred due to pets with a minimum of $25,000 coverage and cause Landlord to become an "additional insured" under the policy.
Note that this is a standard lease form provided by my state's association of Realtors. Landlords should particularly note the second quote if you rent to tenants with pets.
To sum it up, all renters who have any but the most insignificant personal property should carry renter's insurance.
Additional note for landlords: I have special landlord insurance that includes coverage for loss of use of property due to a covered risk. This is intended to reimburse me for my reimbursing tenants for alternate living quarters like for example there is a fire and the house is not liveable for a period of time.
Keep your friends close and your guns closer!
That lease is for Realtors use only so I hope you are using one. If you aren't I hope you know that every single line has to be filled in with at least N/A or it is void, even lines you think don't matter.
That's a standard landlord policy used in place of heowners insurance, if your property has a mortgage your insurance most likely has loss of rent in it.
using ho3 homeowners to cover a rental can be a disaster waiting to happen . i learned the hard way that there is a reason you want landlord insurance to cover a rental .
regular homeowners is for owner occupied and household members only . '
your tenants end up being considered household members and are insured under your policy .
any theft ,arson or vandalism is considered an insurance job since they are insured too under your homeowners . landlord insurance breaks those ties and keeps them from falling under household members .
in fact if someone sue's your tenant for liability you could end up having your insurance company foot that bill because they are considered insured under homeowners .
states vary but here in ny anyone living in your house after 72 hours is considered a household member .
we learned the hardway when a tenant burglarized us years ago . we found out then because we had homeowners and not landlord insurance he was an insured under the policy the same as we were covered . they considered it an insurance job by an insured and denied the claim .
That lease is for Realtors use only so I hope you are using one. If you aren't I hope you know that every single line has to be filled in with at least N/A or it is void, even lines you think don't matter.
That's a standard landlord policy used in place of heowners insurance, if your property has a mortgage your insurance most likely has loss of rent in it.
Of course I am using a Realtor! And well worth the expense (commissions) since I live out of state. Plus I don' t have to show the house, advertise it, and fill out only part of the forms. I have my own addendum which is explicitly incorporated in the Realtor lease.
And yes, I always verify the N/As and often draw diagonal lines through free form areas indicating they are unused.
Ordinary homeowners insurance policies having a loss of use clause may not apply if the property is used as a rental. I have a "landlord protector" policy on my rentals which specifically covers loss of use, and saves money because personal property is not covered. That's the tenant's problem unless landlord negligence caused the loss.
Also, under pet section, my leases state that tenant "is required to maintain a liability insurance policy to cover any liability incurred due to pets with a minimum of $25,000 coverage and cause Landlord to become an "additional insured" under the policy.
We used to have that policy for pools and trampolines as well. But about a year ago, I had an insurance company tell me that "no one does additional insured anymore". Apparently they will notify a 3rd party of a change in the status of the policy, but not insure a 3rd party. I thought they were lying to me, so I talked to 3 other companies, as well as two people I know personally who are in the industry, and they all confirmed that to be correct. At least in my area, no one does additional insured anymore.
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