Important Information Regarding Renters Insurance for Privatized Housing
In accordance with NAVADMIN 198/17, renters insurance will no longer be provided by Public Private Venture (PPV) partners as part of their housing rental agreements. Read the official Navy announcement.
What you need to know:
- Public Private Venture (PPV) partners are no longer required to include renters insurance as part of the housing rental agreements with Sailors.
- The transition to new renters insurance provisions will NOT apply to residents who are currently under a lease contract or are rate-protected at a BAH that predates the 1 January 2015 calculation changes
- Changes immediately apply to residents within any of the following categories:
- carrying out a Permanent Change of Duty Station (PCS)
- undergoing a change in rank or dependent status
- not rate-protected and in an automatic renewal option period
- not rate-protected and signing a new lease with the same (or different) PPV Housing property.
- Sailors, regardless of where they choose to live, are encouraged to obtain renters insurance to cover their personal belongings.
If you have any questions or concerns, read through the Frequently Asked Questions (FAQ) below and you can contact your local Navy Housing Service Center.
Will my rent go down since renters insurance will no longer be provided?
No. The BAH rates for members not already rate protected were adjusted to remove renters insurance in 2015 and the PPV Housing rents were similarly adjusted. Since then, however, the PPV partners have been providing renters insurance coverage at no cost because the coverage is still specified in individual leases with residents. The PPV partners will continue to provide coverage at no cost to all residents until the end of the current lease or renewal term (and upon written notice), or until rate protected members pre-dating the 2015 changes lose their protection under normal criteria. Accordingly, there will be no adjustment to current PPV Housing rental rates as a result of this change. Please discuss any specific questions about your lease with your local PM or HSC.
Why do I need renters insurance?
Renters insurance covers your personal property and your personal legal responsibility (or liability) for injuries to others and/or their property while they are on your property. Accordingly, coverage is recommended to cover your personal property (e.g. electronic equipment, furniture, clothing) and to protect you from being liable for damage you might cause to the building inadvertently (e.g., a kitchen fire or a plumbing mishap), or from injuries to others while on your property.
When will the change to my rent and/or renters insurance occur if I'm already in privatized housing?
If you are rate protected at BAH pre-dating the 2015 changes, your rent and/or renters insurance coverage will change only when you would lose your protection under normal criteria (e.g., Permanent Change of Station, change in paygrade, or change in dependent status). If you are rate protected at BAH effective after the 2015 changes, or you are not rate protected, your BAH already accounts for the removed renters insurance and the renters insurance changes may be effective as soon as your current PPV lease or renewal period expires. Please check with your local PM or HSC for details.
Where can I find renters insurance?
Most major insurance providers offer rental insurance policies. There are different rental insurance options based on the level of protection or property the service members want to insure. Naturally, the desired amount of coverage will impact the cost of obtaining insurance.
How much does renters insurance cost?
The National Association of Insurance Commissioners (NAIC) quotes the average insurance policy at $15 to $30 per month. Specific renters insurance costs will depend on your individual circumstances and desired coverage. Currently, the PPV partners are typically providing between $10,000 and $20,000 per unit in coverage for loss of personal property.
Does the Basic Allowance for Housing (BAH) rate protection apply to this change?
Yes, if you are rate protected at a BAH pre-dating the 2015 changes. In that case, your protected BAH rate continues to include the renters insurance component and the PM is required to continue insurance compensation or to provide comparable compensation until your protection ceases under normal criteria. If your rate protection applies to a BAH rate effective after the 2015 changes, your BAH rate will remain protected but your automatic renters insurance coverage will cease at the end of your lease or renewal term.