Posted on Feb 12, 2015
Are on-base residents losing renters insurance?
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Just read an article that discusses a possible change and removal of renters insurance for on-base families. Can anyone confirm this is actually happening or have you noted any change in your BAH totals? It looks like this will be implemented in March of this year, but curious if anyone has been briefed on it at all or knows a little more about it. Thanks in advance for your insight!
BAH
Housing
Posted >1 y ago
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Renter’s insurance, typically purchased to insure personal property, was eliminated from
the 2015 Basic Allowance for Housing rate computation. When I lived on base before it became privatized I had USAA's renters insurance. When it went privatized, they offered it to me but declined stated I already had it, gave them proof for my file and that was that.
The current renter's insurance policy depends on your locality and who runs the privatized housing for your area, this affects all service branches. 20k in personal property coverage with a $250.00 deductible and $100k in Liability coverage seems the standard but doesn't cover high dollar items, jewelry, silverware, and antiques. If you have high value items, it is recommended you acquire additional insurance.
One of the common misconceptions regarding BAH is that it is intended to cover all of a service member’s housing costs. The original BAH law stated that the allowance could cover no more than 80% of calculated housing costs. Accordingly, the average service member had at least 20% of out-of-pocket expenses subtracted from their allowance calculation. In 2000, the Secretary of Defense committed to reducing the planned average out-of-pocket expense for the median member to zero by 2005. In 2015, the planned out-of-pocket expense was reintroduced at a rate of 1% of national average costs per grade.
the 2015 Basic Allowance for Housing rate computation. When I lived on base before it became privatized I had USAA's renters insurance. When it went privatized, they offered it to me but declined stated I already had it, gave them proof for my file and that was that.
The current renter's insurance policy depends on your locality and who runs the privatized housing for your area, this affects all service branches. 20k in personal property coverage with a $250.00 deductible and $100k in Liability coverage seems the standard but doesn't cover high dollar items, jewelry, silverware, and antiques. If you have high value items, it is recommended you acquire additional insurance.
One of the common misconceptions regarding BAH is that it is intended to cover all of a service member’s housing costs. The original BAH law stated that the allowance could cover no more than 80% of calculated housing costs. Accordingly, the average service member had at least 20% of out-of-pocket expenses subtracted from their allowance calculation. In 2000, the Secretary of Defense committed to reducing the planned average out-of-pocket expense for the median member to zero by 2005. In 2015, the planned out-of-pocket expense was reintroduced at a rate of 1% of national average costs per grade.
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I haven't seen anything yet. Not saying it wont. Just that It hasn't yet.
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Capt Brandon Charters Sir, I read the MILPER this week and is not just the insurance. Those living off-post should see a decrease in their BAH by 1% starting in March. This will affect people PCSing the most but I would say to check your LES ofently to see if there is any change. TSgt Joshua Copeland I don't know how it works in the AF but for my folks in the Army, I would say to ask their S1 shop for the most recent MILPER.
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I am on Ft Campbell, and yes, they no longer provide renters insurance. I was not aware they even offered it free of charge. I have paid for my own from USAA since I got here. Also, they took 1% from BAH, but it doesn't affect those living on post, as they take ALL of your BAH.
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WOW! Housing never looked like that for me. This may have been my last government quarters. In truth, we were not allowed to even hang pictures up at Fort Campbell, KY because of all the lead paint (99-01). At Fort Carson, CO (2002) it was black mold. At Fort Irwin, CA (1992) it was asbestos. Some things do get better with time.
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SGT (Join to see)
I wish my housing looked like that, then I might not mind if I had to make up a small difference if they charged me. The reality of this the supposed 1% reduction and more coming up in the next few years is going to drive service members off of post so that they can get their money worth. Most on post housing is garbage and isn't worth the amount of BAH that they get from us now. As for the lose of the renters insurance, you are better off getting your own now, through USAA you can get better coverage with less hassle.
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Suspended Profile
BAH was reduced by 1 % this year, and they are trying to bring it to 94% of the cost of housing - a pay cut for active duty troops; an outrageous idea brought to you by your leaders in the Puzzle Palace.
I seriously question the wisdom and dedication of the 4 stars and secretaries of the services right now - they just don't get it.
In any case, I always bought renter's insurance when living in quarters. I don't remember ever hearing that we were provided with it. Maybe that's something new since I retired.(2/01)
I seriously question the wisdom and dedication of the 4 stars and secretaries of the services right now - they just don't get it.
In any case, I always bought renter's insurance when living in quarters. I don't remember ever hearing that we were provided with it. Maybe that's something new since I retired.(2/01)
Capt Brandon Charters
This part of the article pretty much answers my question:
"Under current privatization deals, housing managers are required to provide renters’ insurance to military tenants. Under new contracts, renters will have to purchase their own. Some might find they already have such coverage through USAA or other insurers that are popular with the military. If they don’t, families will be encouraged to buy their own renter’s insurance but it will be their personal choice."
Doesn't seem like a fair shake for the AD community, but I guess there could be worse benefits to lose.
"Under current privatization deals, housing managers are required to provide renters’ insurance to military tenants. Under new contracts, renters will have to purchase their own. Some might find they already have such coverage through USAA or other insurers that are popular with the military. If they don’t, families will be encouraged to buy their own renter’s insurance but it will be their personal choice."
Doesn't seem like a fair shake for the AD community, but I guess there could be worse benefits to lose.
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Suspended Profile
This whole concept of privatized housing is a new one to me. However it works out, the current trends are problematic, because cutting the pay of Active Duty troops is reprehensible, and quite frankly, may be against Federal Law, not that that's ever stopped anybody dealing with military and veteran compensation and benefits.
In any case, the bottom line - no incumbent (except maybe a first term Congressman) gets re-elected next year...
In any case, the bottom line - no incumbent (except maybe a first term Congressman) gets re-elected next year...
SFC (Join to see)
We chose to have renters insurance on base here in Germany, due to the fact that only appliances and basic apartment damage is protected through the government. Our pocessions are not.
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