How Can Renters Insurance Help After a Fire?

8/31/2022 (Permalink)

A kitchen fire in Melrose District, CA

Ways Your Renters Policy Can Work For You After A Home Fire Incident

One common misconception many renters have is the belief that they do not need an insurance policy. While renters aren't responsible for homeowners insurance, a renters insurance policy can go a long way after an accident, particularly after a fire. See the many ways your renters policy can work for you after a home fire incident.

Replacement Costs for Personal Property
One of the most common expenses to renters after a home fire is the cost of replacing personal property. If your personal belongings receive fire damage or are destroyed in a residential fire, an insurance policy for renters can be highly helpful. Rental insurance assists with the cost of replacing goods at current purchase value. This is good news if you have lost items to a fire that have depreciated over time. While your old TV or dining room set may not have much cash value if you were to put them up for sale, the replacement value of those items is the amount you would be likely to spend to replace them. Personal belongings commonly replaced by a renters policy include the following:

• Couches
• Tables and Chairs
• Electronics
• Bedding
• Clothing
• Appliances
  
  

Injury and Liability
If you are responsible for starting a fire by your own negligence, renters insurance may be helpful for covering medical costs for those hurt by the fire. For example, if a fire started at your residence causes smoke damage to neighboring tenants, liability costs may be covered or offset by your insurance policy. Each renters policy is unique. Talk to your insurance provider directly to understand the injury and liability coverage available in your plan.

Loss of Use Clause
Finally, an insurance policy for renters may assist you with loss of use. This means, if your dwelling becomes unlivable after a fire, renters insurance may kick-in to pay for the costs of lodging. Lodging expenses may include temporary housing or hotels while a Melrose District, CA, fire restoration expert cleans up the aftermath. Make sure you have a good insurance policy in place before a fire strikes so that you, as a renter, will be protected.