Renter's Insurance

I have two short stories to tell you that involved renter’s insurance. I have many more, but these two should give you the idea.

One day a man called on a house we had for rent. He was very eager to rent immediately because the house he was renting was destroyed by fire. We set an appointment for him to see the house and he filled out a rental application on the spot. He needed the rental instantly because this single dad was living in his station wagon with his three kids. It was cold winter. He didn’t know he could have had a year’s worth of renter’s insurance for under a hundred bucks and he could have been staying in the Marriott Hotel and had all his belongings replaced. Plus the insurance company would pay for his re-rental too. Well, the story doesn’t end well for this guy because when I called the landlord reference and asked about the prospective tenant, the landlord laughed and laughed. “What’s so funny?” I asked. “That idiot burned my house down and hasn’t paid rent in months! I can’t believe he is stupid enough to list me as a reference!”

Another quick story has a happier ending. We rented an apartment in a house to a professional wedding photographer. He came home late one night and left all his expensive camera equipment in his car which was parked in the street in front of the rental. Guess what- His car was broken into and his photography equipment was stolen. He made a police report and reported it to his Renter’s Insurance company. They covered him for the total loss because his car was parked at the address of the rental for which he had the renter’s insurance! Isn’t that awesome? Definitely worth having.

If you don't already have the LPA Lease Agreement, you may want to pick up a copy here.

OK, one more quick one. Back in 1994, I had a beautiful house in Merrick, NY that was available at just the wrong time of year.

At the time, the rent ranged for that place between $2,400. and $2,800. per month. Unfortunately, the wintertime is the worst time on Long Island for a good pool of tenant selection. It’s usually only the unfortunate and people being evicted who are out in the cold looking for a house at that time. I was getting desperate when I got a call from Statefarm Insurance. One of their insured had a house fire in the same town and my place would be perfect for the family.

We did an application and the tenants were barely qualified, but I was told not to worry because the insurance company is paying the rent, but they wouldn’t sign a year’s lease, they would only promise 4 months. Well, they stayed 6 months at $4,400.00 a month. You see, insurance companies realize they have to pay a higher rent on a temporary rental. Very much the way Florida vacation rentals are so expensive during the season.
This guy got a quality rental home, all his belongings including lawnmower and garden equipment replaced. He made out like the bandit he was!