Issue #61: Leaving the house is sooo 2019

Like with health care, insurance companies typically make customers pay a deductible before they kick in. They also may have me choose a limit, so I should have a general idea of the total value of my belongings, according to Mike Gulla, the director of underwriting at Hippo. The firm may only pay up to $2,000 or $5,000, for example, in the event that everything is destroyed. (Policies can also cover liability, which can include if someone gets injured at a party I host.)

“It’s important to pay attention to the fine print on what's actually covered in your contract,” Gulla adds.

That’s solid advice, but my curiosity is really more about my premium. The main reason I got renters insurance was in case my apartment caught on fire while I’m away. During the pandemic I’m never away. In theory, I could put out a fire within seconds. And I’m certainly not throwing any ragers.

So what gives?

Gulla explained that premiums are based not only on the amount of coverage I need and my deductible but also factors like my apartment’s location and the building’s condition. Because they’re highly regulated, there’s not a ton of wiggle room — even though I’m not leaving my house.

“You can’t all the sudden lower somebody's rate unless there's something the consumer does to bring premiums down,” Gulla says. 

For homeowners, this can include replacing a rickety roof (and therefore reducing the risk of water damage). For renters, this can include having a fire extinguisher or a deadbolt lock (and therefore reducing the risk of fire damage or theft).

(but please don't tell me you scrolled past all of my hard work)

Even though it seems unfair, my premium hasn’t dipped to 0 because it’s not really tied to how much I’m at home. I have to do something concrete in order to score discounts because of how the industry works.

In that same vein, I shouldn’t flat-out cancel my renters insurance during the pandemic because my “personal property and belongings still require protection in case of unforeseen circumstances such as a burst pipe or theft,” Wissner-Levy says. So it’s probably still worth it, even in a pandemic, to pony up and protect my home.

“Everyone’s typical schedule has been thrown for a lurch, but renters insurance doesn’t really change based on whether you’re having guests over or are out on the town,” Wissner-Levy says.

via GIPHY

check out this crazy celebrity purchase

via Instagram

Retired NBA champ Scottie Pippen recently took Architectural Digest on a tour of his $2.2 million “vacation house” in Chicago, and it’s outrageous. The mansion has a movie theater, sauna, putting green, wine cellar, trophy case, water slide and life-size stuffed Bengal tiger. There’s also a Ms. Pac-Man/Galaga machine, which typically cost about $3,000. Just like in basketball, Pippen puts points on the (leader) board: His high score is 200,000.

five things I'm loving online right now

send me cute pictures of your pets, please

CREDIT: LESLIE LEWIS

Meet Sonny, a Cavalier King Charles Spaniel who is chilling on the couch in his insured home. Sonny pays for renters insurance because he wants to protect his personal pawperty.

One final life update: I think I’m going to feature all pets in costumes during October. Send me photos of your 401(k)9s and 401(k)itties dressed up!

See you next week.

Julia

P.S. What’s your home insurance situation? What weird item would YOU crush up with a mortar and pestle? Have you seen any hilarious TikToks lately? Send them to me at julia.glum@money.com or @SuperJulia.