City of Takoma Park: Department of Housing and Community Development
RENTAL INSURANCE
Can you afford to lose your personal possessions due to fire
theft or vandalism? Most tenants are not aware that a landlord's
insurance in most cases will not cover for their own personal
property losses unless landlord negligence can be proven. Take,
for example, the following situations. Who would be responsible
for the tenant's property loss?
Ed had recently moved into an apartment on the third
floor of a four story building. One morning he awoke to the sound
of water dripping overhead. The next thing he knew, water came
streaming through the bedroom ceiling, onto his new TV and VCR. He
called the management office and someone responded immediately,
however after an investigation, it was found that the tenant in the
apartment above had accidently left the water on in the bathroom
sink and that it had overflowed.
Rita and her friend had been living in an apartment located on
the top floor of a house for 4 years. It had been a rainy spring
and one evening there was a terrible storm. Lightning struck a
tree and it fell on the house causing severe damage to the roof.
Rain came into their apartment and ruined many of her valued
possessions.
In both of these situations, the landlord's insurance would
probably cover for the repair of the dwelling itself, but not for
the tenant's personal property loss.
How to Protect Your Property
Personal property protection can be obtained for as little as
$100 a year. A policy may include protection against fire,
lightning, smoke, water damage from a pipe rupture, vandalism,
hail, windstorm, theft and personal liability losses should a guest
injure him/herself while visiting your apartment. Many policies
also cover for theft of personal property if for instance, your
wallet or pocketbook is stolen.
READ BEFORE YOU SIGN!!
Although a rental insurance policy may be long and the print
small, it is extremely important to read it thoroughly before
signing. Do not hesitate to ask questions if anything in the
policy is unclear. Some options to look for include:
1. What is the deductible or the amount the tenant is responsible
to pay for each claim? Some policies have deductibles of $250 for
each claim or you may opt to lower the deductible and increase the
cost of your policy.
2. What are the special limits on particular items? For example,
many policies have a $1,000 limit on jewelry and furs. Does this
meet your needs or should you obtain an addendum to your policy
which will take into account extended coverage for these items.
3. Always check the policy to see what it does not cover,
Examples of losses not insured may include: Damage caused by
birds, insects or domestic animals, water damage caused by flood,
damage caused by earthquakes.
4. Does the policy allow for replacement value of property lost or
does it cover for the depreciated value of the property?
5. Does the policy cover for reasonable living expenses if you are
unable to live in your home due to a covered loss?
6. Are there discounts in the policy if your home or apartment has
security devices such as smoke alarms, a fire extinguisher and dead
bolt locks?
BE AN INFORMED CONSUMER
Choose the best policy for your needs and remember to keep
your home safe and secure while you are there and away. Take the
time to inform your children about security and safety measures and
the dangers of playing with fire or matches. Always lock all your
doors and windows while you are away from your home so that it
doesn't appear inviting to a stranger.
For further information about insurance policies, contact a
number of insurance companies and request information about the
policies that they offer. Only then will you be able to make a
educated decision about which policy is best for your needs.
Please contact the Office on Landlord-Tenant Affairs at
(301) 270-5900 for further information.