What To Know About Rental Insurance Fire Damage Coverage

4/18/2022 (Permalink)

What You Should Know About Renter's Insurance Protection Against Fire

Before you moved into your Valrico,FL, apartment, you probably purchased renters insurance. You may be wondering exactly what that insurance does and does not cover. Most rental policies can be applied to various types of emergencies, including:

• Storms
• Theft
• Accidental overflows of water

Fire is another common peril covered by insurance. However, there are some limits to this coverage. Here are some factors that determine the payout you will receive from your insurer.

Structural Versus Personal Property Damage

The structure of your apartment building is considered the landlord's responsibility, not the tenant's. Any fire damage to the walls, floor or roof should be covered by the property owner's insurance. Your renters insurance, meanwhile, should pay for harm to your personal property within the apartment. You can use this insurance money to replace certain items or to hire fire restoration professionals who can repair your belongings.

Even if the fire resulted from your negligence, the damage should still be covered by insurance. The insurer could deny your claim if it determines that you criminally set the blaze, however.

Replacement Cost Versus Actual Cash Value

Check your policy to see if it includes replacement cost coverage. If not, consider purchasing this inexpensive endorsement. This way, if any of your valuables do need to be discarded following a fire, your insurance will give you enough money to purchase new items.

Without this endorsement, the insurer may only reimburse you for the actual cash value of those destroyed belongings. This amount is likely insufficient to purchase replacements.

Loss of Use

Your rental policy may additionally include loss of use coverage. This helps pay for any temporary living expenses you incur, such as hotel payments, while your apartment is being restored.

Renters insurance does pay for damage to your personal property after a fire. To ensure you can actually replace any items that are destroyed in the blaze, you should purchase a replacement cost endorsement . Your policy may also provide loss of use coverage if you have to temporarily move out of your apartment.