Renters Insurance Questions

[cavasinj]

What is the name of your state? Michigan

I am writing as I have recently become aware of the desire to cover my butt, so to speak. My partner and I live in a home owned by his grandparents, and we are paying off the last addition to the home, so there is no actual mortgage, only a home equity loan we are finishing off. We know that they have insurance on the home, but believe it to be only on the structure/shell. We would like to get renters insurance to cover our belongings, at a bare minimum, and would like to know if we need to have an official lease or some other legal documentation as to our rent-to-own agreement prior to insuring our house. Any information is welcomed, even other sources to start with- books, websites, etc. I am sure we need to inspect their current policy to see what it covers prior to requesting insurance as well. Any ideas all?

Thanks in advance
Joe

 

[moburkes]

We would like to get renters insurance to cover our belongings, at a bare minimum, and would like to know if we need to have an official lease or some other legal documentation as to our rent-to-own agreement prior to insuring our house.

No, you do not. You will not be insuring your house. You will be insuring your belongings and yourselves.

I am sure we need to inspect their current policy to see what it covers prior to requesting insurance as well.

No, you do not. Their policy is none of your business. It does not affect you at all. Make sure that both of your names are listed on the policy.

 

[cavasinj]

So I guess a better question is what should we insure- I assume their policy covers the home/structure- as our home sits less than 30' from his grandparents home. However, I do not know what they have insured, and as they consider the house 'ours', and we will sign papers to the house once it is paid off, I feel we need to insure the entire thing if it is not covered on their policy. Doesn't it make sense to find out what is covered prior to insuring anything?

 

[moburkes]

A standard renters insurnace policy will read something like this:
Liability $100,000
Personal Property $20000
Medical payments $2000
Deductible $500

You cannot purchase a rental policy with dwelling coverage. Simply ASK them if they have coverage for both buildings, and especially if they added the newly added room onto the policy (meaning, is the amount of dwelling coverage that they do have enough if the new addition was added).