I rent a yoga studio for 2 hours a week. I left a space heater on, which caused a small fire, causing $10,000 in smoke damage. The studio owner’s insurance paid to fix it, but now they are subrogating against me. My insurance says I don’t have “Damage to Premises Rented to You” coverage.
Key Takeaways
- Damage to Premises Rented to You (DPRtY): This is a specific sub-limit within General Liability. It covers fire/water damage to a space you rent for less than 7 days.
- The $50k Standard: Most policies include $50,000 or $100,000 for this. If you don’t have it, you pay the $10,000 out of pocket.
- “Care, Custody, Control” Exclusion: General Liability excludes property in your care. DPRtY is the exception to that exclusion.
- The Contract: The rental agreement likely holds you liable for any damage.
The “Why”: The Fire Legal Liability
The Trap:
You think “General Liability covers property damage.”
It covers other people’s property.
It usually excludes property you are renting or occupying.
Exception: The “Damage to Premises Rented to You” limit explicitly gives back coverage for fire/explosion/smoke in a rented space. Check your limit. Is it $0? Or $100,000?
The Investigation: I Quoted 3 Major Carriers
1. Thimble
- My Analysis: Their on-demand policy is perfect for hourly rentals. It automatically includes $100k for Damage to Rented Premises.
2. PHLY
- My Analysis: Standard inclusion of $100k to $300k. Good for long-term leases too.
3. Basic Liability (Aggregator)
- My Analysis: Some ultra-cheap policies strip this coverage out to save $10. Check the “Limits” section carefully.
[IMAGE: Screenshot of a Dec Page highlighting “Damage to Premises Rented to You: $100,000”]
Comparison Table: Renter’s Liability
| Carrier | DPRtY Limit | Time Limit (Rentals) | Cost |
| Thimble | $100,000 | 7 Days or Less | $ |
| PHLY | $300,000 | Any | |
| Cheap Brand | $0 | N/A | $ |
Step-by-Step Action Plan
- Check Dec Page: Look for “Damage to Premises Rented to You.”
- Inspect Before/After: Take photos of the room before you start and after you leave.
- Read Lease: Does it require $1M in coverage?
- Turn Off Heaters: Physical risk management is the best insurance.
FAQ
What if I break a mirror?
Fire Legal Liability usually covers Fire/Explosion/Smoke. Breaking a mirror might be excluded under “Care, Custody, Control” unless you have a broader “Voluntary Property Damage” endorsement.
Does my renters insurance cover this?
No. Personal renters insurance excludes business activities.
What if the owner has insurance?
Their insurance pays them, then sues you.