Renters Insurance Question

[vanity]

My gf and I are renting and have renter's insurance on the estimated value of our belongings...roughly $30k for the policy. This way in case the place burns down or we get robbed, we're insured. Good deal for disasters.

Yesterday I received a letter from my apartment mgmt group that across town, a different apt complex experienced a fire. Many of the surrounding apartments received smoke and water damage as a result. These units will need to be re-painted, re-carpted, new fixtures, etc. They went in to explain that replacing those items of smoke and water damage (from the fire) is the tenant's responsibility. And they advised us that to replace our apartment interior, if a similar situation occurred, would be roughly $100k. They curteously enclosed packets from an insurance provider, urging us to sign up.

We're both calling bullshit on this one and our insurance provider has asked to see this apartment complex document. I don't see how our interior could cost anywhere NEAR $100k, why we would be responsible for fire damage to their property, and the inclusion of a certain (sole) company's information/sign-up form is very questionable.

 

[EL72]

Your $30k coverage is for insuring your contents, which is what I had as well as a renter, and should be fine unless you have aportnoy's shoe collection. The rest of the apartment (walls, fixtures...) do not belong to you so they are not your responsibility to insure. It may well cost $100K or more to replace/fix those but they are the landlord's responsibility, not yours.

 

[vanity]

I think one of our minimum wage "tour guides" must've started dating some douchebag at an insurance company. Together they concocted this marsupialed scheme to scare tenants into opening unnecessary policies.

 

[SUPER K]

unless the other complex was composed of condos...

 

[vanity]

I wonder what would happen if that other apartment building had condos. Instead of apartments like I originally stated. What then?

 

[rdawson808]

If the other one were condos the master insurance policy would have covered the structure (which you pay for through your condo fees). The individual unit owners still only have to cover their own stuff.

bob

 

[minhi]

Originally Posted by vanity

I wonder what would happen if that other apartment building had condos. Instead of apartments like I originally stated. What then?

as rdawson says the condo's policy would cover the basics for the building. however the condo owner has to pay the deductible (usually quite high, mine is $5K). and there's also the issue of how complete the restoration for each individual unit will be, some condo interiors are nicer then others and typically the insurance only covers a basic amount.

 

[Memphis]

From what I understood when I talked to my insurance agent, renters insurance only covers the contents of your appartment, the structure is the responsibility of the landlord or management company.

 

[fastrunningmom]

Vanity,
When we were first married (a long long time ago), we owned two condos - one we lived in and one we rented out. We researched this whole topic pretty thoroughly.

It may have changed, and/or differ from state to state, but here's what we found . . . our renters were only responsible for what THEY owned (e.g. furniture, clothing, atc.). As condo owners, we were responsible for everything from the studs in (whether we lived in it or not); so, sheetrock, paint, carpet, fixtures, appliances, etc., were our responsibility and therefore, ours to insure. From the studs out, belonged to the condo association and was their responsibility to insure (e.g., siding, roofing, etc.) There was a battle royal at one point when a neighbor's window was smashed by a branch during a storm. I don't remember how it was resolved.

Based on this, you are absolutely right that you only need to insure your 30K of possessions and nothing else.

Any attorneys want to weigh in on this?

 

[vanity]

It has come to my attention that one of the tenants in our apartment complex is an agent for this insurance company. This week I'll fax a letter to our apartment management that I wish to not subscribe to any Tom Dick and Harry tennant peddling his wares under the guise of "Security", and I request that the apartment complex strongly rethink how they endorse those that solicit to paying tenants on their property.

Further investigation shows that tenants are not liable for any apartment structures, regardless of how much it costs to repaint, refinish, or recarpet. Renters insurance simply covers the value of the items owned by the tenant. Thus the clause included in our documention; "The cost of repairing your unit (carpet, cabinets, etc) is valued at over $100k. Do YOU have renter's insurance)" is wholly irrelevant and misleading. This is a shady maneuver at
best.

Although I'm not totally familiar with insurance sales law, telling people they should consider "Renters Insurance" b/c of the high cost of repairs for an apartment structure, could be in violation of the law.

Those items have nothing to do with one another, and Renters Insurance doesn't cover apartment structural damage. It would be like encouraging someone to purchase car insurance b/c their house doesn't have a carbon monoxide detector...and that they could be liable if a visitor dies from the carbon monoxide in their home. They're selling a policy with fear, and they're lying about what the policy is used for.

 

[EL72]

Originally Posted by vanity

It has come to my attention that one of the tenants in our apartment complex is an agent for this insurance company. This week I'll fax a letter to our apartment management that I wish to not subscribe to any Tom Dick and Harry tennant peddling his wares under the guise of "Security", and I request that the apartment complex strongly rethink how they endorse those that solicit to paying tenants on their property.

Further investigation shows that tenants are not liable for any apartment structures, regardless of how much it costs to repaint, refinish, or recarpet. Renters insurance simply covers the value of the items owned by the tenant. Thus the clause included in our documention; "The cost of repairing your unit (carpet, cabinets, etc) is valued at over $100k. Do YOU have renter's insurance)" is wholly irrelevant and misleading. This is a shady maneuver at
best.

Although I'm not totally familiar with insurance sales law, telling people they should consider "Renters Insurance" b/c of the high cost of repairs for an apartment structure, could be in violation of the law.

Those items have nothing to do with one another, and Renters Insurance doesn't cover apartment structural damage. It would be like encouraging someone to purchase car insurance b/c their house doesn't have a carbon monoxide detector...and that they could be liable if a visitor dies from the carbon monoxide in their home. They're selling a policy with fear, and they're lying about what the policy is used for.

Welcome to the real world!

 

[vanity]

I sent the apartment management company this email:

Dear Sir or Madam,

I am a resident of X-ApartmentComplex at address YYYYY, #123. About a week ago we received a package at our doorstep regarding Renter's Insurance. The materials enclosed cited a case of a recent apartment complex fire in Naperville and the importance of renter's insurance to protect possessions. There was a specific paragraph that is in question, among a few other items;

1) This paragraph stated that the value of the apartment furnishings would cost over $100k. This includes repainting, re-carpeting, new cabinets, etc.
The problem here is that the tenant is not liable for any apartment structural damage. In fact, even with a policy of $100k+, renter's insurance would not pay for anything outside of the tenant's own, private possessions. This paragraph is inaccurate, and most likely used as a scare tactic ruse.

2) Enclosed were materials from a specific insurance company, of which an agent is a tenant at this apartment complex. What is the relationship between this agent and X-ApartmentComplex outside of tenant/landlord? Clearly X-ApartmentComplex management endorses his/her insurance policies, even if the writing of such is wholly inaccurate. Is it part of X-ApartmentComplex policy to endorse all advertisements by tenants of their apartment complex?

3) There was a prize involved for tenants who could prove they have renter's insurance. What this creates is an incentive for renters to purchase insurance from this particular agent under false pretenses.

I'm not completely familiar with insurance law, but selling insurance under the guise of covering something it will not, and then offering a prize for purchasing that insurance, could possibly be in violation of the law. I understand that X-ApartmentComplex would most likely want it's tenants insured, but endorsing a single insurance provider under these inaccurate pretenses is extremely questionable.

I request that this situation be investigated and the residents notified of any forthcomings.


Thank-you for your time,

 

[auto90403]

Originally Posted by EL72

Your $30k coverage is for insuring your contents, which is what I had as well as a renter, and should be fine unless you have aportnoy's shoe collection. The rest of the apartment (walls, fixtures...) do not belong to you so they are not your responsibility to insure. It may well cost $100K or more to replace/fix those but they are the landlord's responsibility, not yours.


Bingo.

Tenant might have liability if he were at fault for a fire, but I've never heard of owner's insurance company going after a tenant.

 

[fastrunningmom]

Originally Posted by vanity

I sent the apartment management company this email:

Dear Sir or Madam,

I am a resident of X-ApartmentComplex at address YYYYY, #123. About a week ago we received a package at our doorstep regarding Renter's Insurance. The materials enclosed cited a case of a recent apartment complex fire in Naperville and the importance of renter's insurance to protect possessions. There was a specific paragraph that is in question, among a few other items; . . . clipped . . .



Exactly! Good job!

 

[lawyerdad]

Originally Posted by vanity

I sent the apartment management company this email:

Dear Sir or Madam,

I am a resident of X-ApartmentComplex at address YYYYY, #123. About a week ago we received a package at our doorstep regarding Renter's Insurance. The materials enclosed cited a case of a recent apartment complex fire in Naperville and the importance of renter's insurance to protect possessions. There was a specific paragraph that is in question, among a few other items;

1) This paragraph stated that the value of the apartment furnishings would cost over $100k. This includes repainting, re-carpeting, new cabinets, etc.
The problem here is that the tenant is not liable for any apartment structural damage. In fact, even with a policy of $100k+, renter's insurance would not pay for anything outside of the tenant's own, private possessions. This paragraph is inaccurate, and most likely used as a scare tactic ruse.

2) Enclosed were materials from a specific insurance company, of which an agent is a tenant at this apartment complex. What is the relationship between this agent and X-ApartmentComplex outside of tenant/landlord? Clearly X-ApartmentComplex management endorses his/her insurance policies, even if the writing of such is wholly inaccurate. Is it part of X-ApartmentComplex policy to endorse all advertisements by tenants of their apartment complex?

3) There was a prize involved for tenants who could prove they have renter's insurance. What this creates is an incentive for renters to purchase insurance from this particular agent under false pretenses.

I'm not completely familiar with insurance law, but selling insurance under the guise of covering something it will not, and then offering a prize for purchasing that insurance, could possibly be in violation of the law. I understand that X-ApartmentComplex would most likely want it's tenants insured, but endorsing a single insurance provider under these inaccurate pretenses is extremely questionable.

I request that this situation be investigated and the residents notified of any forthcomings.


Thank-you for your time,