As shocking as a cold shower

Digging into money maneuvers that feel sus.

Ah, renters insurance. It’s cheap, and it offers decent benefits and protection. However, certain circumstances beyond the control of the tenant can screw up an apartment’s habitability—yet renters insurance won’t help. (I’m unfortunately speaking from personal experience here.)

This is because of the loss-of-use provision. “Loss of use” in this context means if a sudden peril makes a rental unit unlivable or makes a tenant pay for extra stuff like hotel stays or dining out, renters insurance will foot the bill so the insured can maintain their “normal standard of living.”

So, consider my situation: A building gas leak forced the utility company to shut off service. My oven is now an oversize clock that doubles as storage, and a single electric space heater is my only hope of temperature control. Don’t even get me started on the ice bucket challenge shower experience (sans charitable giving).

I filed a claim with my renters insurance, thinking this was a loss-of-use situation, but my adjuster recommended that I cancel the claim. Because, while no one knows exactly when the leak started, the building’s gas system was last inspected in 2008. And it failed that inspection. So it’s more like not-so-sudden peril. 🙃

If renters insurance won’t make up for the loss, what will? It boils down to tenants rights, which vary wildly. Since I’m in NYC, I’m allowed to withhold rent for failure to provide necessities (though not without risk). But in places like North Carolina, tenants have to pay rent in full and sue for a rebate.

Renters insurance is still a must-have, but it’s no panacea. Add this to the list of why emergency funds are critical…and wish me luck.—Myriam