Renter's insurance covering fire damage?

[James Mc Ree]

I have a property that sustained tenant-caused fire damage.  The tenant does not have renter's insurance.  Would the liability portion of a renter's insurance policy typically compensate me for my deductible?  I am considering requiring renter's insurance going forward if that is the case.  I have a high deductible which would be more appealing if there was a backup insurance policy to cover me for whatever the tenant does.

[Todd Rasmussen]

@James Mc Ree

I think a more realistic scenario is that your insurance company fixes the fire damage and you are out the deductible (for now). Your insurance company subrogates the damages (including your deductible) from your tenant's renter's liability coverage. You get a refund for your deductible a year or so down the road when the dust settles on the whole thing.

In order to get the renter's insurance company to pony up, I anticipate you'd have to sue the tenant and your attorney's fees would probably surpass your deductible before you even hit the courtroom.

You should definitely require renters insurance, I just don't think you should plan on using it like you are thinking.