If you have a Samsung phone you might be wondering how consumer recalls affect renters insurance. If you own a device that’s known to cause fires or other risks, are you responsible for a loss that it causes? Would a Cincinnati Renters Insurance policy help to cover those losses? Are you personally on the hook? Does it matter if you knew about the recall but just haven’t gotten around to dealing with it yet?
How Do Consumer Recalls Affect Renters Insurance?
Renters insurance companies keep a close eye on consumer recalls. Many recalls impact only one the safety or property of one household, of course. There are recalls with much broader impact, however. Some can impact both life safety and property risk for an entire apartment building. The Galaxy Note 7 recall is one of the latter kind.
The Consumer Product Safety Commission has issued a formal recall for these Samsung devices. Samsung was already replacing phones that could catch fire or explode. The new formal process allows the CPSC to enforce the recalls as well as monitor it for compliance. It’s worth noting that Samsung handled the matter differently in their home country. In the United States, the recall has been swift and complete. The options for replacement or refund are reasonable. In South Korea, Samsung’s “solution” includes an app to prevent the phone from charging.
Consumer recalls mean that there is an active health or safety hazard in your home. The American public has learned to largely ignore recalls. Many are over minor issues that impact only a small percentage of the recalled item. This recall is different. There is no way to tell which phones will become incendiary devices. The phones could catch fire or explode, and prediction is impossible. The Samsung recall is one of the most dangerous in recent years. Retaining an existing device is asking for an unnecessary renters insurance claim.
Is A Fire Loss Caused By A Recalled Device Covered?
Consumer Recalls And Renters Insurance
Yes. Renters insurance covers an accidental fire loss. This coverage is generally without regard to the direct and proximate cause of the loss. Just because a device has been recalled doesn’t mean you’d have coverage problems. Your personal property could be purchased anew. Most renters insurance policies include coverage for the replacement cost of that property. But there’s something else to be aware of.
Others in your apartment building will suffer significant losses due to your fire. They, and their insurance companies, will seek coverage for their losses from you.
Your neighbors have every reason to believe that you were negligent. Using an exploding phone after you have actual knowledge of the problem constitutes negligence. Clearly, you did not act in the way a reasonable person would. What can you do when they and their insurance companies sue you?
That’s why you have liability coverage on your Cincinnati Renters Insurance. Liability coverage exists first and foremost to cover those losses. You have coverage if your negligent use of a recalled phone causes property damage or bodily injury to someone else.
Don’t forget that defense coverage is part of your liability as well. The people who suffered losses and their insurance companies will line up to sue you. Fortunately, your insurance company has a duty to defend you. Your insurance company pays for the lawyer, but their duty is to you – not the insurance company. You’ll have a defense against each individual suit. This defense coverage lasts until exhaustion of the policy limits by settlement or payment.
Take a moment to think about your coverage. Most people have what’s required by their property manager, or $100,000 of liability coverage. Your defense coverage only lasts until the end of the policy limit, so more coverage might be in order. $100,000 is not going to rebuild an apartment building. $100,000 is not enough to pay for the losses you’re responsible for through subrogation. Often, the cost to increase your liability coverage is just ten or twenty dollars per year. It’s well worth doing and ensures that you have defense coverage for as long as possible. If you already have a policy, call an insurance expert today at (800)892-4308 to see how affordable this extra coverage can be.
Does Renters Insurance Cover A Device With Recalls?
Coverage could be available for the fire loss and for your liability. The device itself could be covered if it were stolen. Alternatively, the recall itself is not something that renters insurance would respond to. There is no actual loss incurred and no damage to your personal property in the case of recalls. The manufacturer makes you whole as part of the process.
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.
Just call (800)892-4308 or click to get covered - whether you need Cincinnati, OH renters insurance quotes online or coverage anywhere else!
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