Insuring an Apartment for Fire Losses

11/5/2020 (Permalink)

Apartment fire in Black Mountain, NC

How Much Coverage Is Needed

Many renters incorrectly assume they'll be covered by their landlord's policy if anything happens to their apartment. However, landlords generally take out coverage for the exterior and interior of the building, but not for the contents of the individual apartments. In the case of an apartment fire, for example, the landlord's policy would likely cover fire damage to the building but not a tenant's furniture or belongings. Knowing how much coverage is needed can help renters choose an appropriate policy.

Selecting Coverage
Renters can make a list of personnel items and their value to help them decide how much coverage they need. They should consider the following factors when buying a policy:

Basics like smoke damage or water damage are generally covered. Check for natural disaster exclusions to determine if separate coverage is needed.
Roommates are typically not covered. They will likely need their own policy.
Renters should keep documentation of items and proof of their value, like receipts. This helps when filing an apartment fire claim.
College students may be covered by their parents' homeowner's policy as dependents but should read the policy carefully before assuming this.

The amount of coverage tenants need to depend on the value of their belongings. Some policies also include loss of use, meaning they offer reimbursement for expenses while a renter is unable to use the apartment due to damage. For example, renters may not be able to inhabit their places in Black Mountain, NC, after a fire while the landlord hires cleanup and restoration services to do their job.

Filing a Claim
If there is damage to or loss of personal property, renters should look into filing a claim. Determining whether to file depends on the value of the item, the amount of the deductible and how much the claim will affect the premium.
Obtaining insurance coverage for an apartment fire ensures that a lessee's valuables are covered. Individual needs vary, but reading policy documents carefully and shopping around can help renters find the best coverage for their needs.