Everett, Wash.
Published: Sunday, March 22, 2009

Landlord's insurance won't help the tenants

By Steve Tytler

 Q: I want to know if a landlord can bear some responsibility to a renter if the renter's car was stolen from the driveway. A friend told me that her ex-husband was renting a home and his auto was stolen. He got his landlord's insurance to cover his loss, and I want to know for sure before I was to ask mine to do the same thing. I'm on disability with a very low income and don't have insurance myself since I rarely drive at all. This is a big setback for me. – M.S., Everett

A: I am sorry to hear about your car. I have had my car stolen before and I know it's a very bad feeling even if you recover the car. If you don't have insurance and you don't get the car back, it's a tragedy.

A landlord is not legally responsible for any personal property owned by a tenant that is stolen from a rental property. So I'd be very surprised if your friend's ex-husband was actually able to collect on a landlord's insurance policy for a car stolen from a rental property. Your friend is probably mistaken, or there may be more to the story that you don't know about.

Most landlords, including myself, encourage tenants to buy their own renter's insurance policy to cover their personal property inside the rental unit. A renter's policy would cover loss from fire or theft, but it would only apply to the personal belongings inside the rental, it would NOT cover their car parked on or near the rental property.

The only way the theft of a car would be covered is if the owner of the car has purchased "comprehensive" auto insurance, which covers theft and damage as well as liability. If you carry only the minimum auto liability insurance coverage required by law, that protects other people if you damage their car and/or injure them, but it does not provide any coverage if YOUR car is damaged or stolen.

I know this is not the answer you were hoping to hear, but I hope your sad situation serves as a warning to other renters who are currently going without insurance coverage.

When I rent out a house or condo, my rental agreement advises my tenants to obtain renter's insurance to cover their personal belongings, but I can't make them buy it. Often, I find that the tenants just "take their chances" and never bother to spend the couple hundred dollars per year that it would cost to buy a renter's policy. I know that the economy is rough and money is tight these days, but can you afford to replace all of your stuff in the event of a theft of serious fire? For most people, the answer is "no."

And remember, that even if you have a renter's insurance policy, you must still obtain an auto insurance policy that covers theft if you want to replace a car that has been stolen.

Insurance is one of those bills that nobody likes to pay. It seems like a waste of money -- until you need it. I encourage all renters to talk to an insurance agent and try to work out an affordable insurance policy that fits your budget.

Mail your real estate questions to Steve Tytler, The Herald, P.O. Box, Everett, WA 98206, or e-mail him at economy@heraldnet.com.
© 2009The Daily Herald Co., Everett, WA