Got a bill of $25,000 from insurance company for not having renter’s insurance.

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Mar 14, 2012

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Insurance Question from Charlotte, NC

Asked on 03/14/2012

Got a bill of $25,000 from insurance company for not having renter’s insurance. I have caused a fire accident when I was a tenant in Charlotte,NC. I have been told that home owner's insurance will cover the property damages. They have fixed the house but now, I've received a bill of $25,000 from the insurance company.

Answer given on March 17, 2012

If you caused damages to someone else’s property, you are considered liable for the damages. The insurance company for the owner of the property paid for the damages to repair the home, but they do have the right to come to you to pay them back for what they paid out in damages.If you had had insurance coverage as a tenant, your liability might have paid for the damages to the home, depending upon the circumstances. That is why everyone should carry insurance, even if they are only renting, so you can make good for the damages that you may cause due to your negligence.If you have the assets to repay the insurance company, they will continue to seek the payment for their loss. If you don’t, the insurance company may drop the claim, or may file a judgement against you in the event you come into some money or assets in the future.

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