By Jolie Breeden
Michelle Green can still smell the smoke.
Although more than a month has passed since smoke filled the apartment Green shared with her husband Theodore, their clothes, furniture and belongings still reek -- despite the couple's move to Westminster.
There wasn't much the Greens could have done to prevent the Jan. 28 fire, which resulted from an electrical problem with an exhaust fan in the apartment below theirs at Courtyard Apartments, 7015 W. 120th Ave. But a few precautions could have eased their life in the days following -- if they had only known.
Those who rent homes and apartments could be more at risk for fire thanks to a lack of control over property maintenance and less able to recover from its effects because of limited, if any, insurance coverage. But there are measures renters can take to mitigate those threats -- including focusing on fire safety before leases are signed and taking advantage of often overlooked renter's insurance.
"What we find a lot of the time is that people don't have renter's insurance," said North Metro Fire Rescue District spokeswoman Wendy Forbes. "It's something that you just don't think about."
The insurance, which ranges from about $15 to $25 per month, can help replace items damaged in a fire and provide money to relocate if necessary. Burglaries, vandalism, liability and other expenses also might be covered depending on the policy.
If the Greens had insurance, they could have replaced their smoke damaged clothing, mattresses and other items. Instead, they're doing time on washer and dryer duty.
"We're still doing laundry, trying to get the smell of smoke out of everything," Green said. "I have renter's insurance now."
In addition to the insurance, Green also recommended checking if apartment complexes are safe.
"My suggestion would be to go to the building inspector to see that they're up to code and they have the proper number of alarms," she said. "I didn't even think about that. I was just trying to find a place to live."
If she had, she might have learned an August 2006 fire swept through another building in the complex. That fire, which damaged five units, was caused by the same fan-related electrical problem that caused the January fire, Forbes said.
While fire officials inspect public areas -- including lobbies, hallways and recreation areas -- for fire safety, individual residences are private and not subject to inspection, Forbes said.
Add to that neighbors' lifestyle choices, such as clutter or smoking, and construction grandfathered in to outdated building codes, and there's a lot of variables outside the renter's control.
"It might be something they should be screening when they're looking for a place," Forbes said.
For those who haven't taken precaution, aid organizations such the Red Cross and the Salvation Army are there to assist with temporary lodging, help in navigating insurance questions, replacing medication, food and clothing and giving mental health assistance.
"Our job is to get them on the road to recovery," said Robert Thompson, spokesman for the Mile High Chapter of the Red Cross. "We aim to provide emergency assistance that will last at least three days."
Although many benefit from that assistance, help -- and the extent of that help -- is offered on a case-by-case basis, Thompson said. Disaster action teams on the site of the emergency determine what the immediate needs are, he said.
The Greens, who were between leases when the fire occurred, didn't qualify for assistance because the building inspector cleared them to return to their apartment after the fire.
While the structure was technically sound, the situation was one more reminder of how alone a renter can be in a fire, Green said.
"Even if the building inspector says you can go back in, it doesn't mean it's livable," she said. "If you can't get help from (emergency agencies) then you're lost. You have no help."
http://rentersinsurancesearch.blogspot.com/
Tuesday
How to Buy Renter's Insurance?
Step 1:
Locate insurance companies that offer renter's insurance by consulting an Internet search engine, the yellow pages of your phone directory, personal friends and family, or other means.
Step 2:
Contact insurance agents and ask about the terms of standard renter's insurance policies; find out if you need extra protection to insure valuables such as jewelry, art or collectibles.
Step 3:
Provide selected insurance companies with your address, along with a brief description and estimated value of your household goods.
Step 4:
Obtain estimates from selected insurance companies for renter's insurance that will provide coverage for your personal property against theft, fire and wind damage; personal liability for accidents of others on your premises; damage to property of others in your care; and living expenses if you're forced to vacate the premises during disasters or repairs.
Step 5:
Consider buying a "replacement value" policy that will reimburse you for the actual cost of replacing your goods (instead of a depreciated value on used goods) in case of loss.
Step 6:
Compare quotes and coverage levels from different insurance companies and purchase the policy that best suits your needs and budget.
Visit http://rentersinsurancesearch.blogspot.com/ for more information regarding Renter's Insurance.
Locate insurance companies that offer renter's insurance by consulting an Internet search engine, the yellow pages of your phone directory, personal friends and family, or other means.
Step 2:
Contact insurance agents and ask about the terms of standard renter's insurance policies; find out if you need extra protection to insure valuables such as jewelry, art or collectibles.
Step 3:
Provide selected insurance companies with your address, along with a brief description and estimated value of your household goods.
Step 4:
Obtain estimates from selected insurance companies for renter's insurance that will provide coverage for your personal property against theft, fire and wind damage; personal liability for accidents of others on your premises; damage to property of others in your care; and living expenses if you're forced to vacate the premises during disasters or repairs.
Step 5:
Consider buying a "replacement value" policy that will reimburse you for the actual cost of replacing your goods (instead of a depreciated value on used goods) in case of loss.
Step 6:
Compare quotes and coverage levels from different insurance companies and purchase the policy that best suits your needs and budget.
Visit http://rentersinsurancesearch.blogspot.com/ for more information regarding Renter's Insurance.
Renters Insurance Can Offer a Safety Net
Three months ago, 27-year-old Joel Sorensen watched as fire ripped through his Austin, Texas, apartment building. The flames were so high that firefighters couldn't get near the building. "I knew instantly that it was a total loss," says the computer-sales account executive.
Mr. Sorensen alerted his insurer, State Farm. "I had a check within a week for the entire claim and they picked up all my living expenses for 30 days," he says.
Most of the other 19 tenants, however, didn't have renters insurance. "These people are starting over with absolutely nothing," says Mr. Sorensen. "I feel pretty grateful."
A relatively low premium for renters insurance can yield a big payoff in the event of a fire or other property loss. But when you're young and don't own much, the coverage may also seem like something you can skip.
"Not every kid with a boom-box and a laptop needs renters insurance," says Robert Hunter, director of insurance at the Consumer Federation of America. He says to consider it if you have a lot of high-priced furniture, electronic equipment, jewelry or collectibles. Add up the estimated value of your possessions to decide. Typically the smallest policies cover $10,000.
Renters insurance covers your belongings in many cases of theft or damage, and it may pay for temporary living expenses if your rental is damaged. Policies typically include some form of liability protection, which pays, for instance, if you are sued by someone injured in your apartment.
'Actual' or 'Replacement'?
You have two choices in insuring your possessions. "Actual cash value" policies pay the depreciated value of the damaged property -- say, the current market value of that computer you bought new three years ago. "Replacement cost" coverage reimburses the cost of replacing your property.
Most insurance specialists recommend replacement-cost policies even though they typically cost around 25% more. "An old pair of jeans may be worth a buck today, but what's a new pair of jeans cost?" says Jim Fiske, vice president of marketing at Chubb Personal Insurance.
According to Allstate Insurance, the average annual renters insurance premium is $195. Cost varies based on policy size and where you live. Those living in urban and disaster-prone areas will pay more.
The deductible, or the amount of loss you shoulder before the insurance kicks in, is commonly $250 or $500. To lower your premium, consider opting for a higher deductible, says Tim Wagner, director of Nebraska's Department of Insurance, but "get only what you can afford to lose."
Renters in some locales should consider purchasing flood insurance or additional coverage against potential damage and other events that aren't covered under standard policies.
Some insurers, including State Farm and Allstate, will extend parents' homeowners insurance coverage to dependent adult children, typically 25 years old and younger, even if they are out of school. Some state and domicile restrictions may apply.
Note that roommates typically need separate policies unless they qualify as "domestic partners."
Call Your Auto Insurer
If you already have auto insurance, be sure to get a quote from that insurer as you weigh various renters-insurance offers. You may qualify for a "multi-line" discount. State Farm offers to discount your auto-policy premium by 5% to 15%, while Allstate may cut both your auto- and renters-insurance premiums 5% to 15%.
Basic smoke alarms can save you 2% at State Farm, while having an alarm that automatically dispatches authorities can save you as much as 15%.
Copyrighted, Dow Jones & Company, Inc. All rights reserved.
Mr. Sorensen alerted his insurer, State Farm. "I had a check within a week for the entire claim and they picked up all my living expenses for 30 days," he says.
Most of the other 19 tenants, however, didn't have renters insurance. "These people are starting over with absolutely nothing," says Mr. Sorensen. "I feel pretty grateful."
A relatively low premium for renters insurance can yield a big payoff in the event of a fire or other property loss. But when you're young and don't own much, the coverage may also seem like something you can skip.
"Not every kid with a boom-box and a laptop needs renters insurance," says Robert Hunter, director of insurance at the Consumer Federation of America. He says to consider it if you have a lot of high-priced furniture, electronic equipment, jewelry or collectibles. Add up the estimated value of your possessions to decide. Typically the smallest policies cover $10,000.
Renters insurance covers your belongings in many cases of theft or damage, and it may pay for temporary living expenses if your rental is damaged. Policies typically include some form of liability protection, which pays, for instance, if you are sued by someone injured in your apartment.
'Actual' or 'Replacement'?
You have two choices in insuring your possessions. "Actual cash value" policies pay the depreciated value of the damaged property -- say, the current market value of that computer you bought new three years ago. "Replacement cost" coverage reimburses the cost of replacing your property.
Most insurance specialists recommend replacement-cost policies even though they typically cost around 25% more. "An old pair of jeans may be worth a buck today, but what's a new pair of jeans cost?" says Jim Fiske, vice president of marketing at Chubb Personal Insurance.
According to Allstate Insurance, the average annual renters insurance premium is $195. Cost varies based on policy size and where you live. Those living in urban and disaster-prone areas will pay more.
The deductible, or the amount of loss you shoulder before the insurance kicks in, is commonly $250 or $500. To lower your premium, consider opting for a higher deductible, says Tim Wagner, director of Nebraska's Department of Insurance, but "get only what you can afford to lose."
Renters in some locales should consider purchasing flood insurance or additional coverage against potential damage and other events that aren't covered under standard policies.
Some insurers, including State Farm and Allstate, will extend parents' homeowners insurance coverage to dependent adult children, typically 25 years old and younger, even if they are out of school. Some state and domicile restrictions may apply.
Note that roommates typically need separate policies unless they qualify as "domestic partners."
Call Your Auto Insurer
If you already have auto insurance, be sure to get a quote from that insurer as you weigh various renters-insurance offers. You may qualify for a "multi-line" discount. State Farm offers to discount your auto-policy premium by 5% to 15%, while Allstate may cut both your auto- and renters-insurance premiums 5% to 15%.
Basic smoke alarms can save you 2% at State Farm, while having an alarm that automatically dispatches authorities can save you as much as 15%.
Copyrighted, Dow Jones & Company, Inc. All rights reserved.
Renters Insurance - Personal Property Coverage
Personal property coverage
As with any renters insurance policy, coverage varies by state, company, and type, but here are some basic examples of personal property to include in your inventory. Items not listed here may still be insurable; ask agents about customizing your policy with more options.
Property typically covered by renter's insurance:
- Stereo systems, VCRs, and television sets
- CDs, DVDs, videos, and tapes
- Cameras and other photography equipment
- Movable appliances, including microwave oven
- Furniture
- Sports equipment
- China and glassware
- Clothing
- Books
- Miscellaneous
Property typically covered by renter's insurance with limitations:
- Home computers
- Cash, including coin collections
- Checks, traveler's checks, and securities
- Jewelry and watches
- Precious and semi-precious stones
- Comic books, trading cards, and stamps, including collections
- Antiques and fine art
- Goldware and silverware (theft)
- Rugs, wall hangings, and tapestries
- Firearms (theft)
- Furs or clothing trimmed in fur
- Boats or other watercraft, and related equipment
Natural hazards coverage by renter's insurance
Again, natural-hazard coverage varies by state and company, but most rental insurance policies protect your property against losses created by the following:
- Vandalism
- Water damage from failure of plumbing or appliances
- Frozen water pipes
- Hail
- Windstorm
- Smoke
- Explosion
- Vehicles or aircraft
For a higher premium, most renters insurance carriers offer options to add coverage for hazards not included in a standard renter's insurance policy:
- Earthquake, landslide, or other damage caused by movement of the earth
- Water damage cause by an underground source or flooding
- Nuclear-hazard damages
Renters Insurance - More Frequently Asked Questions (FAQs)
Renters Insurance - More Frequently Asked Questions (FAQs)
Q: Am I required to have homeowners insurance?
A: Generally, yes. If you have a mortgage on your property, typically the lender will require that you purchase, and continue to hold, homeowners insurance during the duration of the loan. The premium for paying for the insurance may be escrowed with your loan payment or may be an item you will need to pay for separately. Check your loan document for the terms you're obligated to follow. If you own your home free and clear, you'll still want to consider coverage to guard against property loss or damage, as well as liability lawsuits.
Q: What does homeowners insurance protect against? Are all polices the same?
A: Homeowners insurance has two types of coverage:
Casualty, which provides protection for the dwelling and often the home's contents. Liability, which provides protection should someone be injured on your property.
All policies are not created equal. There are various levels of casualty coverage, from a very basic policy that provides a minimum coverage of the home only and no contents, to an expansive policy for older, historic homes. Liability coverage typically starts at $100,000, but greater coverage is available and often recommended, depending on your situation.
Q: Is my landlord responsible for the damage to my property because of a fire in the apartment I rent?
A: No. The landlord's policy covers the actual building, but not your property. You should always consider renter's insurance to insure your belongings against the same perils homeowners insure against.
Q: Is replacement cost the same as the sale price of a home?
A: No. The selling price includes the value of the home plus the land the home is located on. The replacement cost is equal to the amount you would need to spend to replace the structure. Typically, homeowners don't need to insure the value of the land, although it is wise to have an appraisal of the home completed to establish the replacement cost of the home.
Q: How is the replacement value of my belongings calculated?
A: Most policies that provided coverage for personal property will assign a value to all the items based on a formula. Typically, the value is a percentage of the replacement value, or cash value, your home is insured for. While it may seem that the amount allowed would be enough to cover the items damaged or stolen, replacing each and every item at current prices can become quite expensive. You should consider photographing, inventorying and evaluating your belongings to come to a total replacement cost. If your policy falls short, consider increasing the standard coverage to ensure that you have adequate coverage. If necessary, add a separate policy for specific items, such as jewelry, electronics or a prized collection that may not be completely covered under a standard policy. Consider adding an inflation clause or endorsement, so your policy continues to keep up with rising prices.
Q: Who pays for the rental my family is in while our house is being repaired due to damage?
A: Typically if your policy includes a provision called "loss of use," your insurance will cover the cost of temporary housing up to the specified limits. If this provision isn't included in your policy, you'll be responsible for the costs.
Q: Am I covered for damage caused by storms, bad weather or other severe weather?
A: Depending on the homeowners' policy you hold, you may be covered for a limited number of perils - such as fire, windstorms or hail - or you may be protected for a more expansive list of perils including those listed plus, for example, water damage caused by appliances or damage to your home from the weight of ice, snow or sleet. Check your policy or call your agent to verify exactly what your policy covers. Earthquake or flood damage insurance generally must be purchased separately.
Q: Is the property I have in my car covered for theft?
A: Often, it is. Check your policy for specific coverage or limits.
Q: My neighbor slipped on my front step and fell. If she sues, will my homeowner's policy pay?
A: The liability portion of your homeowner policy was designed for just this situation. Your insurance policy provides for payment of medical expenses and for the legal costs of defending you against a claim.
Q: My son is at college and lives in a dorm. Does my homeowner policy cover the possessions he took with him against damage or theft?
A: Yes. Personal property normally located at your residence but which is at another location is typically covered. Check with your agent for the specific amount of coverage: electronic equipment taken to college can quickly exceed the standard coverage you may have.
Q: During a thunderstorm, a tree fell on my roof. Is this covered?
A: Yes. The repair of your roof as well as some, if not all, of the cost of tree removal may also be covered. If the tree had not hit your roof, your insurance may not have covered any of the tree removal charges.
Q: My car was damaged by a limb that fell from a tree located on my property. Does my homeowner policy cover this damage?
A: No. Look to your automobile insurance for coverage of this damage. This type of damage is generally covered under the comprehensive portion of automobile insurance.
Q: My sump-pump failed after my house was struck by lightening. This resulted in an inch of standing water in my basement before the pump was repaired. Is the damage covered?
A: Possibly. Water seepage is typically not covered by homeowners' insurance, but damage caused by lightening often is. Check your policy, and check with your agent, to see if the damage is covered.
Q: I have a small, home-based business. Is my inventory covered against damage or loss under my homeowner insurance?
A: No. A homeowners' policy doesn't cover you for losses that might occur with a home-based business. You can obtain a separate business owners' policy to cover losses from theft or damage, or you may possibly qualify for an endorsement to your current homeowners' policy.
For more information regarding Renters Insurance, visit http://rentersinsurancesearch.blogspot.com/. RentersInsuranceSearch does not verify this information and can not guarantee the accuracy, completeness, or timeliness of the information. Please use at your own risk.
Q: Am I required to have homeowners insurance?
A: Generally, yes. If you have a mortgage on your property, typically the lender will require that you purchase, and continue to hold, homeowners insurance during the duration of the loan. The premium for paying for the insurance may be escrowed with your loan payment or may be an item you will need to pay for separately. Check your loan document for the terms you're obligated to follow. If you own your home free and clear, you'll still want to consider coverage to guard against property loss or damage, as well as liability lawsuits.
Q: What does homeowners insurance protect against? Are all polices the same?
A: Homeowners insurance has two types of coverage:
Casualty, which provides protection for the dwelling and often the home's contents. Liability, which provides protection should someone be injured on your property.
All policies are not created equal. There are various levels of casualty coverage, from a very basic policy that provides a minimum coverage of the home only and no contents, to an expansive policy for older, historic homes. Liability coverage typically starts at $100,000, but greater coverage is available and often recommended, depending on your situation.
Q: Is my landlord responsible for the damage to my property because of a fire in the apartment I rent?
A: No. The landlord's policy covers the actual building, but not your property. You should always consider renter's insurance to insure your belongings against the same perils homeowners insure against.
Q: Is replacement cost the same as the sale price of a home?
A: No. The selling price includes the value of the home plus the land the home is located on. The replacement cost is equal to the amount you would need to spend to replace the structure. Typically, homeowners don't need to insure the value of the land, although it is wise to have an appraisal of the home completed to establish the replacement cost of the home.
Q: How is the replacement value of my belongings calculated?
A: Most policies that provided coverage for personal property will assign a value to all the items based on a formula. Typically, the value is a percentage of the replacement value, or cash value, your home is insured for. While it may seem that the amount allowed would be enough to cover the items damaged or stolen, replacing each and every item at current prices can become quite expensive. You should consider photographing, inventorying and evaluating your belongings to come to a total replacement cost. If your policy falls short, consider increasing the standard coverage to ensure that you have adequate coverage. If necessary, add a separate policy for specific items, such as jewelry, electronics or a prized collection that may not be completely covered under a standard policy. Consider adding an inflation clause or endorsement, so your policy continues to keep up with rising prices.
Q: Who pays for the rental my family is in while our house is being repaired due to damage?
A: Typically if your policy includes a provision called "loss of use," your insurance will cover the cost of temporary housing up to the specified limits. If this provision isn't included in your policy, you'll be responsible for the costs.
Q: Am I covered for damage caused by storms, bad weather or other severe weather?
A: Depending on the homeowners' policy you hold, you may be covered for a limited number of perils - such as fire, windstorms or hail - or you may be protected for a more expansive list of perils including those listed plus, for example, water damage caused by appliances or damage to your home from the weight of ice, snow or sleet. Check your policy or call your agent to verify exactly what your policy covers. Earthquake or flood damage insurance generally must be purchased separately.
Q: Is the property I have in my car covered for theft?
A: Often, it is. Check your policy for specific coverage or limits.
Q: My neighbor slipped on my front step and fell. If she sues, will my homeowner's policy pay?
A: The liability portion of your homeowner policy was designed for just this situation. Your insurance policy provides for payment of medical expenses and for the legal costs of defending you against a claim.
Q: My son is at college and lives in a dorm. Does my homeowner policy cover the possessions he took with him against damage or theft?
A: Yes. Personal property normally located at your residence but which is at another location is typically covered. Check with your agent for the specific amount of coverage: electronic equipment taken to college can quickly exceed the standard coverage you may have.
Q: During a thunderstorm, a tree fell on my roof. Is this covered?
A: Yes. The repair of your roof as well as some, if not all, of the cost of tree removal may also be covered. If the tree had not hit your roof, your insurance may not have covered any of the tree removal charges.
Q: My car was damaged by a limb that fell from a tree located on my property. Does my homeowner policy cover this damage?
A: No. Look to your automobile insurance for coverage of this damage. This type of damage is generally covered under the comprehensive portion of automobile insurance.
Q: My sump-pump failed after my house was struck by lightening. This resulted in an inch of standing water in my basement before the pump was repaired. Is the damage covered?
A: Possibly. Water seepage is typically not covered by homeowners' insurance, but damage caused by lightening often is. Check your policy, and check with your agent, to see if the damage is covered.
Q: I have a small, home-based business. Is my inventory covered against damage or loss under my homeowner insurance?
A: No. A homeowners' policy doesn't cover you for losses that might occur with a home-based business. You can obtain a separate business owners' policy to cover losses from theft or damage, or you may possibly qualify for an endorsement to your current homeowners' policy.
For more information regarding Renters Insurance, visit http://rentersinsurancesearch.blogspot.com/. RentersInsuranceSearch does not verify this information and can not guarantee the accuracy, completeness, or timeliness of the information. Please use at your own risk.
Subscribe to:
Posts (Atom)