The Importance of Renters Insurance

Many times when we are called out to fire-damaged apartment buildings, we encounter tenants that do not have renter's insurance.  The fire may not have affected their unit directly but their belongings may be affected by smoke damage and/or they need to move out of their apartment in order for building repairs to be completed.

Typically the cost of moving, cleaning and/or replacing their belongings, as well as temporary housing during

repairs, is the tenant's responsibility, not the landlord's.  If the tenant does not carry renters insurance, this can be a costly expense in the middle of an already stressful situation.

Renters insurance is a fairly inexpensive investment with most policies costing between $100-$300 per year. Most policies will cover the following:

• Personal property -This includes loss due to theft or destruction in the event of fire, storm or other covered peril.  Think of items you use on a daily basis that you would need to immediately replace if your residence was destroyed - clothing, cell phone or even eyeglasses.
  
   Also, many policies will cover your belongings even when you are not at home - for example, if your bike is stolen from the bike rack at work.  
• Housing costs - If the property you are living in is damaged and needs to be repaired and you need to find temporary housing, it is typically more expensive.  Also, some leases may require you to continue paying your regular rent during repairs.  
  
• Liability - If someone is visiting you and gets hurt while in your apartment or rental home, you may be held liable for their medical expenses.  This also covers damage to your neighbor's property you may be responsible for.  
  

Spending a few hundred dollars now can save you thousands down the road if something unexpected happens.  

But it won't happen to you, right?

That's what this guy thought: