Renter's Insurance

[8 Bit WWBG]

...:::"It covers things like staying in a hotel while you're displaced, which when you rent instead of own, could be a long time, since you have no control over it.":::...

A good friend is facing a situation like this, there is damage because the landlord either failed to maintain the property, or tried to do a patch-job on something that should have been replaced in total. In such a case, would the LL be responsible for paying the costs of displacement? After all, had he done his due diligence, the property would be fine. I know LLs have the responsibility to keep the place inhabitable.

I'm not sure if she has renters insurance -- the double coverage would be a good thing. Nevertheless, if its the LL's fault, it seems a shame for her to risk her insurance going up.

[8 Bit WWBG]

...:::"Has anyone else ever heard of this?":::...

Yes. I did this. Well worth the worry, especially when a bunch of idiot college students are concerned. True story, my freshman year, some jerk upstairs was annoyed that he was unsuccessful at bagging some girl, and decided to take his anger out on a water fountain. The pipes of said fountain were right above my room, and water came pouring through the ceiling. None of my stuff was destroyed thankfully, but things could have gotten ugly.

...:::"He tried to sue me, but fortunately I had renters insurance who covered me for the damage done to his place.":::...

This! In our litigious "its not my fault, who can I sue" society, the thing I fear most is liability. It is not cheap to defend yourself from a suit.

[wvugurl26]

So I looked at one with Nationwide, $20k personal property, $4k loss of use, $341 yearly premium. I knew when I looked before it wasn't cheap in this freaking zip code. Yes, I know much cheaper than the alternative, just pointing out its not less than $100 here.

[kinetickid]

Jan 7, 2011 13:12:27 GMT -5 The Walk of the Penguin Mich said:

As I said earlier, I had a washer hose burst in my apartment and while it did little damage to my place, it destroyed the apartment of the person who lived under me. He was also away for the summer and was out of contact with the management, so while they went into the apartment and did what they could to ameloriate the damage to the structure, they would NOT touch his belongings. So he had a nice mold experiment growing on most of his belongings.

He tried to sue me, but fortunately I had renters insurance who covered me for the damage done to his place. I don't know if they paid him off or not (I suspect that they did) but I know that I did not have a judgement filed against me for his damages.

So there was a flood in your apartment; when is it the renter's fault and when is it the landlord's responsibility?

We don't have anyone who lives under us and we don't have a washer, either.

[wvugurl26]

The coverage quoted to me only included coverage for backed up sewer and drains and only if it was determined to be through no fault of the insured. By default it was excluded from the quote. Options range from $5000 broad coverage to 100% Broad. The higher end bumps it from $341 to $355. We do have washers in the apartments.
I'm going to look at other companies but after a bad experience with auto insurance I may shy away from the lowest bidder. Sometimes you get what you pay for and the hassle is not worth it.

[The Walk of the Penguin Mich]

So there was a flood in your apartment; when is it the renter's fault and when is it the landlord's responsibility?

My washer, my responsibility. However, the washer hose was replaced when I moved, 2 years earlier. The burst hose was a fluke and has been replaced with a stainless steel one. However, it doesn't mean that I no longer pay for insurance.

We don't have anyone who lives under us and we don't have a washer, either.

You have a small child, right? What happens if your child turns on a faucet and you leave you house?

BTW.....the water went to my back neighbor too (who happened to be a coworker of mine). Her damage was caught as early as mine and she had less.

If someone else causes a fire, are you going to be able to put yourself up in a hotel for an indefinite period of time? If YOU inadvertently cause a fire, are you prepared to have people sue you due to the damage that you caused?

Renter's insurance covers a lot of situations and for a couple hundred $$/mo, you've got a safety net.

At this point in you and your husband's life, you need to protect your future earnings from possible judgements against you.

[The Walk of the Penguin Mich]

By default it was excluded from the quote. Options range from $5000 broad coverage to 100% Broad. The higher end bumps it from $341 to $355.

That is high. I have replacement cost insurance for my belongings, I think about $45K worth. I also carry a rider on my policy for my jewelry up to $5000 (most policies only cover up to $500) and mine is around $250/year. Since it's bundled with my auto insurance, I get a small discount on this as well.

[mudflap81]

A good friend is facing a situation like this, there is damage because the landlord either failed to maintain the property, or tried to do a patch-job on something that should have been replaced in total. In such a case, would the LL be responsible for paying the costs of displacement? After all, had he done his due diligence, the property would be fine. I know LLs have the responsibility to keep the place inhabitable.

Your insurance pays then goes after your landlord's insurance company. Makes it so you don't have to deal with it.

This next phrase needs disclaimers because it is a sweeping generalization, but a lot of landlords who will cut enough corners on basic maintenance to make a big claim can pretty much be expected to try and short-change you on temporary living arrangements. Also, they might be the most honest landlord ever but if something knocks out 10 tenants, they might not have enough cash reserves to pay for everyone's expenses.

[wvugurl26]

That is high. I have replacement cost insurance for my belongings,

I have a feeling based on the zip code I'm not going to get it under $100. Closer to $200 would be nice though. That did include replacement value and I spent a couple hours checking out websites noting prices for what it would cost me to replace my electronics, furnishings, etc so I think the $20k figure is a good estimate.
That was with Nationwide, I am going to check out other places today. Last time I did this I ended up with a ton of phone calls so this time I put my prepaid cell number in, I never hear it ring to answer it I always have to find it when I need to let visitors in the gate at night.

[hodap2001]

I have renters insurance and it came in handy last year, when the town-home I was renting went up in flames thanks to a neighbor who had their lights and water turned off (Section 8) and couldn't pay their bills. She used candles to light her house thus causing a fire. She died in the fire a long with 3 of her 5 kids in the town-home. I was very blessed to have renters insurance and I maxed out the policy. It was well worth the $115.00 a year policy $50K.

[wvugurl26]

This is sooo much fun. Like I know what year it was built. Not exactly something I ask a potential landlord. Now I remember why I never got a quote from this company last time. That one was better $159/year. I was poking around the rental company's website trying to find construction year. Seems insurance is required now, it wasn't when I signed my lease.

[The Walk of the Penguin Mich]

You probably don't want a policy this cheap, WV.....I think that this is one place where you get what you pay for.

I'd hate to try to calculate how much it would cost to replace all of my belongings. I don't think that the $45K that I currently have is unreasonable.

[wvugurl26]

Mich I did the calculation of replacement cost last night. I spent hours looking things up on websites. It includes 10k for backup of sewer/drain, $20k for contents, and $100k for personal liability. Seemed to be better coverage than the $341 one.

[The J]

WVU -- your zipcode sucks

I pay $400/year for condo owner's insurance, which provides 80k in personal property, a 10k fine art rider, 500k liability and studs in replacement of the unit.

[SVT]

I was sent a quote yesterday and it was like $250/year for 20k personal property. I don't know about any other details yet.

[wvugurl26]

WVU -- your zipcode sucks

For cost of things yes it does suck. I upped liability to $300k and it was $175. Still have to call the rental office and see what year this place was built. Obviously not recently bc there's only 1 cable outlet!!!! I think the 20k property is sufficient, I added up all the big stuff and still had $9k for all those little things and clothes.
I think I found another YM sin when I added up what I've spent on Bare Minerals. Not all at once and a lot of it was on sale but who knew I had that much money in makeup brushes?

[8 Bit WWBG]

...:::"Your insurance pays then goes after your landlord's insurance company.":::...

I'll pass that on, thanks. Hopefully all will work out.

...:::"I added up all the big stuff and still had $9k for all those little things and clothes. ":::...

In paying you out, insurance companies also love to try and depreciate things as much as possible. Electronics are a big target for that.

...:::"a 10k fine art rider":::...

Got any pieces of interest?

[wvugurl26]

That's why you get replacement cost coverage. I took insurance classes in my previous reincarnation as a finance major

[iono1]

Somebody has to be a contrarian, so I'll take the position. I lived in apartment complexes for 25 years. I didn't own anything valuable. Nothing ever happened in my apartments. One time the apartment across from me got water damage in a closet from a small fire in the apartment above it & the landlord replaced anything that was damaged. I never kept anything in my car worth stealing & if they stole the car my auto insurance covered it.

I saved thousands NOT getting renters insurance for 25 years. I also don't waste my money on extended warranties and other things that the insurers scare people into buying. Until I bought my new car, I didn't have collision this year either & I now have $1,000 deductible on my car.

These prices for what you get in renters' insurance seem outrageous compared with my home owner's policy. I pay around $400/year to cover replacing my house, liability etc. It sounds like some of you renters are willing to pay that much for far less coverage. I think unless you have no money, renter's insurance isn't worth it. I never regretted not having it-my apartments never burned, flooded, got broken into and I never had anyone fall either.

PS: When I moved into my house, I threw out or gave away most of the furniture. I really had nothing of value in those apartments & renters insurance for me would have been a waste of good money.

[wvugurl26]

I guess if I had a lot in liquid savings it would be a waste. The number I came up with last night was $11k and that was excluding clothes and a lot of little stuff. I have to dress professionally for work that's not cheap. I can't finance that kind of hit and I'm not depending on the landlord to reimburse me. My building has 30 units and the complex has 300 units. I'm not going to count on them being able to get that kind of money to reimburse everyone.
As far as you getting more much for the homeowners insurance, I'm sure homeowners insurance is more here than you pay. Its a notorious HCOL city in the northeast.

[The J]

Got any pieces of interest?

My stepmother is an artist -- she does portraits and landscapes -- and I have several pieces she's done. In fact, since she's recently given me a couple more, I may have to up the size of the rider. She's putting together an invoice showing the value of each painting, so I can decide. I also have a few nice nautical pieces that my grandfather gave me, and several museum-quality replica model ships that he did.

[The J]

I never regretted not having it-my apartments never burned, flooded, got broken into and I never had anyone fall either.

Hindsight's easy. You get insurance, to steal Chris Rock's material, in case shit happens.

Jan 8, 2011 20:21:23 GMT -5 wvugurl26 said:

I guess if I had a lot in liquid savings it would be a waste.

It's not. The biggest thing people forget about is the liability aspect. Replacing your stuff sucks. Losing everything because someone slips on water you spilled in the kitchen would be far worse.

[iono1]

Jan 8, 2011 21:18:53 GMT -5 The J said:

I never regretted not having it-my apartments never burned, flooded, got broken into and I never had anyone fall either.

Hindsight's easy. You get insurance, to steal Chris Rock's material, in case shit happens.

Jan 8, 2011 20:21:23 GMT -5 wvugurl26 said:

I guess if I had a lot in liquid savings it would be a waste.

It's not. The biggest thing people forget about is the liability aspect. Replacing your stuff sucks. Losing everything because someone slips on water you spilled in the kitchen would be far worse.

It's not hindsight-I chose at the time not to buy renters insurance. Every year during that time, I was right. Hindsight would be the guy who bought it coming over to the dark side with me realizing it wasn't worth it. I knew it then, I know it now.
If you're totally broke with an apartment full of worthless junk, you don't need renter's insurance. If anyone had fallen, they would have had to have sued my landlord anyway, since they weren't going to get anything from me. What would they have received, my $25 couch, which was given to me for free?

There will always be insurance agents and all types of salespeople telling people they need insurance for everything. The best example is buying anything at a department store in the Sears family (Sears/K-Mart). If you buy anything from a cheap radio to a major appliance they try to sell you an extra warranty, at of course, extra money. Buy a $20 radio, they'll "insure" it for about 15-20% more.

They may not be on this board, but I'm sure there are a lot of people who are dead broke, have few possessions and you couldn't get a dime out of them if you sued them. They're probably renting because they're too poor to own anything. They do not need renter's insurance, just like I don't need to insure that $20 radio I bought from K-Mart.

[The Walk of the Penguin Mich]

If you're totally broke with an apartment full of worthless junk, you don't need renter's insurance. If anyone had fallen, they would have had to have sued my landlord anyway, since they weren't going to get anything from me. What would they have received, my $25 couch, which was given to me for free?

A judgement against any future earnings maybe?

You may have had an apartment full of junk, but I do not. My belongings are insured for about $45K and that's probably what it would cost to replace them.

Not everyone lives a college student's lifestyle once they become a professional and as my earnings increase, I prefer not to leave myself open to the potential loss of them due to a possible mistake on my part.

[The J]

It's not hindsight-I chose at the time not to buy renters insurance. Every year during that time, I was right. Hindsight would be the guy who bought it coming over to the dark side with me realizing it wasn't worth it. I knew it then, I know it now.
If you're totally broke with an apartment full of worthless junk, you don't need renter's insurance. If anyone had fallen, they would have had to have sued my landlord anyway, since they weren't going to get anything from me. What would they have received, my $25 couch, which was given to me for free?

So in 25 years of renting, you never accumulated anything more than a $25 couch and $0 in the bank? Yes, if I was in that situation, I'd have bigger concerns than renter's insurance.

[iono1]

Jan 9, 2011 11:45:42 GMT -5 The Walk of the Penguin Mich said:

If you're totally broke with an apartment full of worthless junk, you don't need renter's insurance. If anyone had fallen, they would have had to have sued my landlord anyway, since they weren't going to get anything from me. What would they have received, my $25 couch, which was given to me for free?

A judgment against any future earnings maybe?

You may have had an apartment full of junk, but I do not. My belongings are insured for about $45K and that's probably what it would cost to replace them.

Not everyone lives a college student's lifestyle once they become a professional and as my earnings increase, I prefer not to leave myself open to the potential loss of them due to a possible mistake on my part.

Maybe life in the big city is different. I've never known anyone who had $45,000 worth of stuff in an apartment and other than including cars in the garage, I've never known anyone with $45,000 worth of stuff in their house. I'm lucky if I have $10,000 worth of personal property in my house.
I would never have come close to anything near that much in an apartment. When I lived in an apartment, as soon as I got some money I went out and bought a house. I didn't spend the money on stuff to fill an apartment. I just can't imagine someone who can afford to accessorize an apartment with that much stuff not being a little more conservative on the spending & using that money for a house. Once again, you must live in a HCOLA where $45,000 doesn't get you enough of a down payment to get a house. I'd never want to live my adult life in an area like that. I grew up in a HCOLA & got out because living there was just too frustrating.

[zibazinski]

The dorm and even student apartments REQUIRED you to have renter's insurance.

[The J]

Replacement cost of my suits/dress shirts/ties alone is over $5k. And it's not like I have a giant wardrobe, but quality suits are expensive. My electronics would cost several thousand to replace. It would cost several thousand to replace the contents of my kitchen. I've been given stuff as gifts that would be expensive to replace.

It's not actually that difficult to get the number up that high.

[zibazinski]

I require my tenants to have renter's insurance as well and they have to show me the paid up policy when I do the inspection on the property. I had one tenant complain until I explained to him that I was covered but what was he going to do for furniture, clothing, a place to live, etc? That changed his thinking.

[wvugurl26]

Even when I lived in a LCOL area I had no desire to own a house. I just don't need the hassle. For me there would be far more costs involved with owning a home compared to renting. I'd have to hire someone to cut the grass for one thing bc I'm allergic to it.
I'm not at a point in my life where I'm settling down. This is town #3 since I graduated college. By no means am I blowing a house downpayment on furnishings for an apt. My current income simply does include available cash flow for furnishing an apt from scratch. The bare minimum of things I would need to replace would be over $10k easily.
Even if I stay in this area beyond the remaining 2.5 years of probation I have with my job, I wouldn't want a house here. The quality of construction is piss poor all over and that's not a hassle I want to deal with.