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This happened to a co-worker's daughter and her hubby just a couple weeks ago. Their renters insurance is covering her stuff and going after the apartment's insurance for the deductible. They offered them a different apartment because theirs won't be liveable for a while but ONLY if they would sign a paper saying that their insurance company won't go after the deductible from them. So, they have refused to sign, gotten a lawyer and are living with my co-worker for now. They just want out of their lease at this point and get their $500 deductible paid.
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