Can an Owner Make Me Carry Renter's Insurance in California?
Renting a house or apartment can be costly. After paying the application fee, first month's rent, security deposit and moving expenses, you may not be able to afford much else. However, in California, the owner of your rental has the legal right to require you to carry renter's insurance, and you may have to agree to it in your lease.
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Purpose
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Owners of rental properties carry insurance to cover repair or replacement of the dwelling if it's damaged or destroyed. Also, they may have liability insurance to protect them from legal action by a tenant. You may not feel that you have valuables worthy of being insured, but, if you are the reason for damage to the property, such as by accidentally starting a fire, you can be liable to pay for it. Therefore, it's usually best for you to protect your belongings and your finances by purchasing a renter's insurance policy.
Coverage
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In California, renter's insurance usually covers your possessions for a certain amount that you and insurance company agree upon. Also, you can be protected against $100,000 or more in personal liability or negligence. You can have medical payments of a visitor covered for $1,000 or more and, if you can't stay in the unit due to extensive damage from a covered event, you can cover a portion of your cost to live elsewhere during repairs. In addition, California Civil Code allows a landlord to require you to carry insurance to protect against damage caused by a waterbed, if you own one.
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Cost
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The cost of a renter's insurance policy depends on the value of your belongings and other policy limits, in addition to where your rental is located. However, premiums are usually low and can cover you for a few hundred dollars per year at the time of publication. If you choose a higher deductible, you may be able to save some money. You can receive discounts on your premium if you and your roommates use the same provider. In addition, if you carry other policies with the same company, such as life or auto insurance, you may qualify for further discounts.
Lease Addendum
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Since an owner has the right to require you to carry renter's insurance, wording may be added in the lease, or as an addendum attached to it, specifying a date by which you must have a policy. Failure to provide proof of insurance can be a violation of your lease and cause for eviction. Read your lease carefully before signing and, if you are not certain of your landlord's requirements, ask.
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References
- "California Tenants' Rights"; Janet Portman, David Brown; 2010
- California Department of Consumer Affairs: When You Have Decided To Rent
- California Department of Insurance: Consumers--Residential Insurance (Homeowners and Renters)
- The Wall Street Journal; A New Cost for Renters: Insurance; AnnaMaria Andriotis; 2011
- Renters Insurance: California Renters Insurance
- FindLaw: Renting and Insurance
