Renting

The California wildfires led many to question the role insurance plays in the rebuilding of those devastated communities.

The deadly wildfires that are tearing through Los Angeles have amplified the concerns of renters and homeowners at time of constant climate uncertainty. The total economic loss from the fires is expected to be in the hundreds of billions of dollars, according to Accuweather. 

The fires have led many to question the role insurance plays in the rebuilding of those devastated communities. In case of fire, what protection and reimbursement are you entitled to as a renter?

Home insurance can be easier to comprehend, as it typically covers the cost of rebuilding a home and the replacement of items lost  — in most natural disasters. For renters, however, the terms are less clear, with both renters insurance and landlord insurance at play. 

“In Massachusetts law, the landlord policy only covers $750 to relocate a person,” said John LoPriore, founder and president of LoPriore Insurance Agency in Stoneham. “Every tenant should have renters insurance for the additional coverage of your belongings, money to relocate, loss of use, and more.”

If the tenants didn’t have renters insurance, the only thing they are legally eligible for is the $750 from their landlord to relocate — an amount that is not enough for the long-term support needed after losing a home.

Landlords have no responsibility to cover the loss of their tenants’ belongings. 

How the fire was caused may also contribute to what each party is entitled to. If the fire was tenant-caused, the resident will have to pay certain costs to the landlord, and the landlord may be able to terminate the lease and still hold the tenant accountable for rent payments.

If the fire was caused by another source, and the property is completely destroyed, tenants have the option to terminate their lease. If it is inhabitable, but not destroyed, tenants may have to wait out the lease while the repairs are completed, depending on their rental contract.

In most cases in this situation, LoPriore said, landlords have coverage for “loss of rent” that will cover their tenants’ rent during this period.

In these times, it’s better to be safe than sorry. As a renter, it’s important to take cautionary measures in case of disaster.