A Landlord’s Tale – Why Renter’s Insurance Really Matters

Jonathan was angry that he was being evicted, so he planned revenge.  Once he’d moved out all of his belongings, he stopped the kitchen drain, then turned the water on in the sink, locked the door and left.  By the time Tom, the landlord, came to clean the place the next day, thousands of dollars in damage had been done.

But Tom was smart.  Before renting this house, he required Jonathan to purchase renters insurance.  So when it came time to file an insurance claim for the repairs, the claim went against Jonathan’s insurance, not Tom’s. 

Because stopping the drain was an intentional act, it was deemed a liability claim.  Now this claim will follow Jonathan for at least the next three years.  If he tries to buy a house, his insurance could easily be as much as ten times higher than normal.  Even Jonathan’s renters insurance for his next place will cost more.  Tom never had to pay a dime, his insurance rates didn’t increase, and his next tenant had a brand new kitchen to enjoy.

The moral of this true tale (only the names have been changed) is this – Landlords, before you rent to anyone, require proof of renters insurance.

Renters, don’t be stupid.  Causing intentional damage is not only foolish, it can cost you a fortune for years to come.