If you are renting and don't have a renters insurance? Think again. Whether you just landed in the US or a long time tenant, you need to consider renter's insurance. In the event of a fire or any damage to the rental property caused by your negligence, then the property owner or their insurance company may collect the damages from you.
The property owner can transfer the legal right of the claim to their insurance company (called Subrogation in legal circle) and they may collect the money from you if the damaged is caused by your negligence. It is more difficult to flight with a big insurance companies and their pricey attorneys than fighting with the property manager or property owner.
The Landlord/Tenant subrogation rule in California holds that a tenant's liability to the landlord's insurer for negligently causing a fire depends on the intent and reasonable expectations of the parties to the lease as ascertained from the lease as a whole. (Does your lease agreement mention Subrogation waiver? Are you a co-insured in the property insurance purchased by the owner?).
For complete description of the rule in each state, visit the site:
LANDLORD / TENANT SUBROGATION
If you buy renter's insurance, then your insurance company will cover your liability and pay for your personal belongings. You can either buy Liability insurance (covers the damage to the structure due to your negligence) or Personal property (any covered damage) or both. It is fairly inexpensive to get renters insurance from your auto insurance company ($12-15/month)
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Recently a friend of mine is asked by the owner's insurance company to pay a large sum for the fire damage to the property. He is fighting the insurance company and disputing the allegation that it was his negligence that caused the fire.
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