Module 3: As a Renter, How Much am I Responsible for?
While landlords usually use security deposits to cover damages, state laws often allow them to seek more money if the deposit doesn't cover the full cost. This is typically meant for extreme circumstances, for example when tenants trash a home before they leave. And unfortunately, most state laws don’t specify what happens to your security deposit in the event of a disaster, like a fire or flood.
Here are some important things to know:
Who was at fault: Even if a fire was an accident (like leaving a pot on the burner), a landlord may still hold you responsible.
Paying for the damages: Your landlord might keep your security deposit to help pay for repairs. And if the damage is severe, your landlord might try to collect the remaining balance even after keeping your security deposit.
Can my landlord charge me for damages?
And here is what we recommended as a strategy for moving forward:
Prioritize Pro-rated Rent: Ask for your pro-rated rent for the month back first; this is often easier to get than a security deposit.
Pick Your Battles: If you were at fault, you might consider letting the landlord keep the security deposit if it means they won't pursue you for more money later.
Keep Things Friendly: Your landlord is also stressed and dealing with their own loss and insurance claim process. So staying on good terms can prevent them from wanting to go after you for extra costs.
Your liability insurance can help
If you have renters insurance, your policy almost certainly includes liability coverage. Think of this as a "protection bucket" that pays for damages if your landlord or their insurance company holds you responsible for a loss. A typical liability limit is $100,000, but check your policy to see how much is in that bucket so you know exactly how much coverage you have if your landlord sends you a bill.