Here at Effective Coverage, we get a wide variety of questions about Renters Insurance. Many of them are variations on common themes, but we’re always happy to answer those questions. On the other hand, sometimes we get a question that just doesn’t have an easy answer. Let’s take a look at one.
Does The Easter Bunny Need Renters Insurance?
That’s actually an interesting question. It’s a hypothetical, of course, we won’t tell you why we know it’s a hypothetical. Most who read on a level to have found and read this article will probably know the answer to that question already and we wouldn’t want to disillusion anyone who doesn’t.
A renters insurance policy defines the named insured, to whom the coverage applies, as “the named insured shown in the Declarations”, their spouse, and often any relatives who live in the same household. We suppose that the Easter Bunny has a household, and could in theory be named as an insured based strictly on that definition. Underwriting guidelines, of course, may vary somewhat.
Later in the definitions, one could certainly infer that ISO intended to define the insured as a person. “Insured means… you and residents of your household who are… other persons under the age of 21 and in the care of any person named above.” Does this assumption that the insured is a person or persons make the Easter Bunny ineligible for coverage? Perhaps, perhaps not. Generally the policy is interpreted to the benefit of the policyholder when there is any ambiguity, and that question has not to our knowledge been specifically tested with regard to the bunny in question.
Does Renters Insurance Cover The Easter Bunny’s Personal Property?
We would think not, all considered. First and foremost, the Easter Bunny is unlikely to have any personal property of any kind. Rabbits, as a general rule, make their homes in places that are not conducive to owning things. They also have a heck of a time using credit cards or cash to buy personal property, given their lack of opposable thumbs or any practical method of carrying the card or cash!
If the Easter Bunny’s personal property such as the leaves and grass they use as a bed were to be covered, valuation would be an interesting question. How do you calculate replacement cost for leaves, which are by definition only available as used property after the tree is done with them?
Does Renters Insurance Cover The Easter Bunny’s Personal Liability?
Yes and no! Personal liability coverage on will offer coverage for bodily injury or property damage. Bodily injury has long been held, of course, to apply only to people. If somehow the Easter Bunny causes an injury to a person in his non-professional life (i.e., not while delivering Easter candy), that might well be covered if we assume that he is in fact an insured.
Property damage liability from the Easter Bunny’s day to day life might also be covered if he’s an insured. Of course, that liability is most likely to be found with regard to other animals whose property he damages, so the question may be moot.
Why are we qualifying this on his day to day non-professional life? We were hoping you’d ask!
If The Easter Bunny Has Renters Insurance, Does He Have A Coverage Gap?
Yes, and it’s an awful big one! The Easter Bunny spends one morning a year making a very, very fast trip to bring candy. Whether he is paid for his services, or only reimbursed for expenses, there is likely to be a concern here. Many policies define “business” as an activity for which you receive more than $2,000 in compensation for the year. That has been interpreted in various ways, some of which include any and all reimbursement for expenses involved in the activity.
Whoever is financing the Easter Bunny clearly is, at minimum, reimbursing him for his expenses in that significant travel to deliver candy, as well as for the cost of the candy. Have you seen how expensive candy gets right before Easter? Obviously there is a massive bankroll behind Easter Bunny Conspiracy, LLC (hereinafter “EBC”). Someone has to pay for all of those costs, because as we established earlier bunnies have some difficulty with the payment process.
Someone is funding EBC. We don’t know who, and quite frankly we don’t care who because we like candy! Notwithstanding that, EBC is clearly receiving money in compensation for those business activities in acquiring, storing, and delivering candy. That would likely make those business activities, rather than a hobby. EBC and the Easter Bunny (though you find very little information on the anonymous New Mexico LLC which owns an anonymous Nevada corporation with bearer shares which finally owns EBC, LLC, nominally headquartered in Delaware) are clearly engaged in business. That means the Easter Bunny needs a business owners policy to cover his liability while doing his job. His renters insurance just won’t cut it!
Does the Easter Bunny need renters insurance? That’s in debate because we’re not sure how helpful it would be to him. Do you know who does need renters insurance, though? You do!
The national average price of renters insurance is just $187.00, according to the III. That works out to as little as fifteen dollars per month. The vast majority of families can budget renters insurance easily at those prices.
Additionally, it's important to note that renters are at a significantly higher risk of experiencing loss than homeowners. Renters occupy roughly one third of total housing stock in the country, and yet they are fully fifty percent more likely to experience theft than homeowners, according to the Bureau of Justice Statistics.
It only costs a few dollars a month to protect your family, and this cheap renters insurance is a great way to mitigate the additional risks that come with being a renter.Most people are able to afford to protect their families. Renters insurance will cover your liability and your personal property, since you’re not engaged in a shadowy once-a-year candy delivery business with no obvious ownership or money trail.
The Easter Bunny (and EBC), however, are probably out of luck because getting the business coverage they need would require revealing the ownership of the several companies involved in keeping the conspiracy afoot, and that is unlikely ever to occur. It appears that they are depending on the anonymous nature of their business to protect them, rather than being properly insured. Thinking you’re judgement-proof and don’t need insurance is never a good way to protect yourself.
Effective Coverage offers the nation's only completely mobile platform to quote and purchase renters insurance right from your phone or tablet in just one minute. Get an online renters insurance quote today and protect your family.