Real Estate

Tenants insurance and insurance company?

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  • Mar 3rd, 2018 2:03 pm
[OP]
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Tenants insurance and insurance company?

There is a longer story. I had tenants insurance up until Jan 25. I was mailed a bunch of papers I guess in January regarding a change over in companies. They needed a canceled cheque I think since it was a new company. Ever since I received these papers I have started looking at other places for insurance. As of January 25 I assumed the policy stops.

Can they charge me for the time after my policy expired?

I was told today if I canceled I would need to pay and sign a release unless I was insured by someone else.

Any thoughts ?
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Aug 29, 2006
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Your assumption is wrong, you or your new insurance company should be telling them to cancel and your new insurance company will provide the necessary proof that you have coverage.

This isn't just the insurance company trying to be difficult but there is a lot of regulations at hand for them to have to follow as well.

If they end up charging you for the time since Jan 25, it will be prorated anyways and if you actually had already switched insurance right after, then get your new insurance to talk to them and usually they could work something out since people switch and it could happen both ways all the time. Don't just cancel and not buy insurance, that is usually an invite for trouble.
Last edited by hdom on Feb 23rd, 2018 1:46 pm, edited 1 time in total.
The Devil made me buy it - RFD. :twisted:
[OP]
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Mmm I'm a bit confused. Fine if you think I owe them. But on the last note...insurance is not mandatory.
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Have been a RFDer long enough to have read all the terrible things that happened to people that didn't want tenant insurance because it is "not mandatory" and they didn't think anything could happen until it does...
trellaine201 wrote: Mmm I'm a bit confused. Fine if you think I owe them. But on the last note...insurance is not mandatory.
The Devil made me buy it - RFD. :twisted:
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trellaine201 wrote: There is a longer story. I had tenants insurance up until Jan 25. I was mailed a bunch of papers I guess in January regarding a change over in companies. They needed a canceled cheque I think since it was a new company. Ever since I received these papers I have started looking at other places for insurance. As of January 25 I assumed the policy stops.

Can they charge me for the time after my policy expired?

I was told today if I canceled I would need to pay and sign a release unless I was insured by someone else.

Any thoughts ?
The information below is not legal opinion or advice. Reader beware.

Companies changing over is a moot point. Unless you gave them notice to cancel your plan, there is nothing wrong in assuming you are still insured with them. Just give them notice and then put a stop payment on your account. They are correct on the pro-rated part, as you were technically still insured with them. Unless you made a claim, I'm not sure what release they want you to sign.

Tenant insurance is a double-edged sword. On one edge, landlords are responsible for normal wear and tear of the unit and any maintenance repairs; so no need. On the other, if there is an accidental fire or water flood, the landlord is only responsible for repairs to the unit, not the contents.

With depreciation, the value of most things in one home is negligible after 7-9 years and unless you have replacement cost policy, your ACV payout will be slim. So, really, the only good thing tenant insurance is for, if you are responsible (by your negligence) for damage to your unit and the landlord sues you.
Corvus oculum corvi non eruit.
[OP]
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Interesting...thanks.

This was from their email to me.


"Or, should you still want to cancel I can forward you a release. At this point you will owe for time on risk if you have not placed insurance elsewhere"
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Sep 9, 2010
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OP, maybe one of the regulars at the Real Estate forum can help you (i.e., landlord/owner/RE-manager experience). Not too sure that this topic fits well in Off Topic

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Related threads (searched by tag):

Tenant Insurance: tags/tenant%20insurance/

Renter's Insurance: tags/renter%27s%20insurance/

^ several threads that might be of interest to the OP.

====

tenant-renters-insurance-1881143/
Last edited by aviador on Feb 23rd, 2018 2:33 pm, edited 2 times in total.
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[OP]
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Ok :) it was tough to decide where to place it.

Can a mod move this to real estate forum?

Thanks
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trellaine201 wrote: Interesting...thanks.

This was from their email to me.


"Or, should you still want to cancel I can forward you a release. At this point you will owe for time on risk if you have not placed insurance elsewhere"
That was a poorly worded email. When I stopped one type of insurance, I just received a letter from the insurer saying from X date, they are no longer responsible for any of my claims. Maybe that's what the writer of the email meant to say by the release. Otherwise, it makes no sense.

Also the "At this point ..." sentence is confusing. Tenant insurance is not mandatory. Sometimes third parties (i.e. your landlord) requires you to have it, via rental agreement. Otherwise, no. So it's not clear what they meant by "you will owe for time on risk."

Maybe they meant to say you will require to pay on a pro-rata basis for the time you had insurance before you gave notice. For ex., if your monthly rate is X, then you would be responsible for (N days/total month days) multiplied by X rate. N days are the amount of days used before you gave notice.
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[OP]
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Yah I think there basically saying I owe from Jan 25. As for the release I'm not sure what that's all about.

The whole ordeal was kind of confusing to me. I've never experienced this. In my opinion they should not imply that customers are renewing and even then the new company doesn't even have my banking info.

At this point it's more what's right and what's wrong as I don't want to pay the month if I don't have to.

Thanks

I did not give them notice. I didn't expect they would keep me on the policy without a payment.
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trellaine201 wrote: Yah I think there basically saying I owe from Jan 25. As for the release I'm not sure what that's all about.

The whole ordeal was kind of confusing to me. I've never experienced this. In my opinion they should not imply that customers are renewing and even then the new company doesn't even have my banking info.

At this point it's more what's right and what's wrong as I don't want to pay the month if I don't have to.

Thanks

I did not give them notice. I didn't expect they would keep me on the policy without a payment.
No worries. When it comes to insurance companies, never assume anything. Seriously.
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What does your contract say?

Does it say your insurance is automatically renewed unless you specifically cancel it?
Or does it automatically expire unless renewed?
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Micelli_Illuminatti wrote: So, really, the only good thing tenant insurance is for, if you are responsible (by your negligence) for damage to your unit and the landlord sues you.
Don't forget liability for other accidents (your dog bites someone, etc)
[OP]
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Hmm sounds questionable if I should be spending a lot on this tenants insurance. I’m in a 1Br rental. I think the only stuff i have worth anything is my electronics. I guess I need to make sure my insurance includes replacement cost?

I probably don’t need any fancy insurance.
[OP]
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Follow up and conclusion to my tenants/home insurance. It’s mandated that insurance is auto renewed. At least the sales person says. I finally sorted things out with the original policy I’ve had for years. But glad I did get other quotes. I told the agent I had a quote for $380 compared to $499 they were renewing at. Like a car salesman she said they needed to send a request for this. I’m like sure. Then a few minutes later she says I can give it to you for $342 and she could do it herself. Strange. Kinda leaves me wondering how important insurance is.

They can just make any number up for a policy. *shrug*

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